Material Fact – Strategic Partnership of Movida

Material Fact

JSL S.A. (“JSL” or “Company”), (B3:JSLG3), a publicly-held corporation, pursuant to the provisions of CVM Instruction 358 of January 3, 2002 (“ICVM 358”), hereby informs its shareholders and the market in general that, on August 30, 2018, Movida Participações S.A. (“Movida”), a publicly-held company controlled by JSL, signed a nonbinding Letter of Intent (“LOI”) with AVIS BUDGET CAR RENTAL, LLC a subsidiary of AVIS BUDGET GROUP (“Avis”) for a Strategic Partnership (“Transaction”).

The Transaction includes the following items:

  • Movida becomes the Master Franchisor for Brazil for 10 years and renewable for additional 10 years
  • Brand Cooperation Agreement in which Movida may add Avis and Budget Brands to its stores in Brazil and Avis may add Movida Logo in the main destiny airports for Brazilians in the world.
  • Agreement for the referral of inbound and outbound reservations between Movida and Avis
  • Assets acquisition of approximately 4,400 cars, being 3,500 in Rent a Car (RAC) and 900 in Fleet Management and Outsourcing, with an estimated value ofR$150 million. The parties anticipate that the asset acquisition to be settled in one year.

Through the Transaction all Movida clients will be in a position to benefit from being served in more than 180 countries throughout the Avis global network and all Avis customers will be served by Movida in Brazil.

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