The Portuguese Government has decided to proceed with discussions with two airlines that submitted proposals to acquire part of TAP: Lufthansa and Air France-KLM. In a press conference held this Friday, the Minister of the Presidency, António Leitão Amaro, clarified that although the offers are distinct, they have a 'very close global valuation.' This justifies the 'negotiation effort' with both competitors, aiming to obtain 'improved proposals' so that the Government can select 'a single competitor for the final negotiation.'
This period of final negotiation with the two participants will last 'a few weeks.' Only after this phase will the Government decide which company will advance to the ultimate negotiation of TAP's privatization. The minister emphasized that the choice of air carrier will not be based solely on the offered value.
On September 1st, Parpública submitted the report containing the two binding proposals for the privatization of TAP to the Government. This process involves the sale of up to 49.9% of the company's capital, with 5% reserved for workers. The unsubscribed portion can be bought by the chosen investor through a right of first refusal.
Referring to TAP's first-half results, which registered a loss of 99.2 million euros attributed to fuel costs, the minister chose to highlight the 'historically high sales, the highest in memory,' achieved by the carrier in the same period. He added that 'valuations naturally always take into account these kinds of circumstantial factors and structural trajectories, namely sales and business expansion.'
The final proposals cover both financial and strategic aspects for entering the airline's capital. Furthermore, planned investment, fleet development, focus on sectors such as maintenance and sustainable fuels, as well as compliance with labor agreements, are being analyzed.
The procedure establishes, from the outset, an optional stage of negotiations aimed at improving the proposals before the investor is selected. The final decision will require a series of formal procedures, including approval by the Council of Ministers and obtaining authorization from European competition authorities.
Air France-KLM was the first interested party to confirm the submission of a non-binding proposal in April, reaffirming its strong interest in the Portuguese carrier. The group also highlighted its experience in dealing with state shareholders. The group's CEO, Benjamin Smith, recently stated that 'TAP fits perfectly into the Air France-KLM 'multi-hub' strategy, and our goal is to strengthen operations in Lisbon while developing connectivity in other cities in the country, including Porto.'
On the other hand, Lufthansa advocates for TAP's growth in the Brazilian market, the expansion of its Lisbon 'hub,' and the strengthening of its presence in Porto. The German group is willing to acquire a minority stake but seeks to ensure influence in the company's executive management. Lufthansa Technik is implementing an industrial unit in the Lusopark business complex in Santa Maria da Feira, focused on aircraft parts repair and maintenance. This investment, estimated at hundreds of millions of euros, is expected to generate more than 700 qualified jobs by 2027.
The Government imposes guarantees regarding the preservation of the TAP brand, the headquarters in Portugal, the Lisbon 'hub,' and routes considered crucial, including important international connections for the economy and Portuguese communities. The executive reserves the right to suspend the process at any time, without compensation to interested parties, if it deems that the proposals do not protect the country's strategic interest.