TEP Signs a Key Contract With BTG to Receive Asset Management Services

SAO PAULO, July 30 /PRNewswire/ -- TEP, a holding company owned by the Amaro family, the controlling shareholder of TAM Airlines ( TAM, BOVESPA: TAMM4) and TAM Executive Aviation, signed an agreement with global investment firm BTG, whereby BTG will manage TEP's interests with the goal of further developing the businesses, focusing on long term value maximization.

The contract does not involve any direct or indirect equity investment and includes a performance-based fee arrangement, thereby representing a full alignment of interest between the parties involved.

"The timing is right for TEP to improve its financial and execution capabilities, as well as its strategic thinking in evaluating the ever-changing dynamics of the aviation industry. Our intention is to clearly maintain and further promote the TAM brand and the Amaro family's legacy in the aviation industry. We found through this arrangement with BTG, a way to bring in-house world-class financial sophistication and strategic vision, as well as managerial discipline," said Maria Claudia Amaro, Chairman of the Board of TAM Airlines.

"Moreover, this is an initiative that challenges us to take our strategic thinking to a new and broader level. Our new relationship with BTG will contribute to a richer dialogue, permitting the identification and execution of opportunities to further develop and grow our business. But it is important to emphasize that TEP shareholders will always have the last word in the decision-making process," said Mauricio Rolim Amaro, Chairman of the Board of TAM Executive Aviation.

"This is an innovative model of asset management in the Brazilian marketplace, through which BTG will provide TEP with financial sophistication and management and execution capabilities in an integrated and synergistic way. The contract represents a milestone in combining the activities of BTG in non-traditional asset management, private equity and merchant banking businesses," said Carlos Fonseca, a BTG partner.

About TEP

TEP (TAM Empreendimentos e Participacoes S/A) is a holding company owned by Amaro Family, the controlling shareholder of TAM Airlines and TAM Aviation Executive. TAM Airlines has been the largest company in the domestic market for more than four years. It offers flights to 42 cities in Brazil and, with the trade agreements signed with regional companies, reaches 79 different destinations of the national territory. In addition, it maintains code-sharing agreements with international companies that allow passengers to travel to wide range of destinations in the world. TAM Executive Aviation is a leader in sales in its segment, represents Cessna Aircraft Company and Bell Helicopter in Brazil, and also offers a wide range of services such as chartering, management and maintenance of aircraft.

About BTG

BTG is a global investment firm with offices in Sao Paulo, Rio de Janeiro, London, New York and Hong Kong. The company currently manages about US$ 1.5 billion in assets. The company was founded in 2008 by Andre Esteves, former head of Fixed Income, Currencies and Commodities of UBS AG, former chairman and CEO of UBS Latin America and former CEO of Banco Pactual; Persio Arida, former president of the Bank Central do Brasil; and a group of former senior partners of Banco Pactual and senior executives from UBS.

SOURCE BTG