Azores Airlines sale draws airlines, funds and sector groups
Portugal’s Azores Airlines sale has attracted interest from airlines, financial investors and sector companies, as non-binding bids are due on Monday.
Azores Airlines’ privatisation has attracted a broad mix of potential buyers, including airlines, financial investors and aviation-related companies, ECO has learned, in a process that matters for investors tracking Portugal’s state-backed restructurings and regional air links. The deadline for non-binding bids expires on Monday.
SATA Holding received eight expressions of interest for the sale of at least 75% of the airline, which operates international routes and connections between the Azores islands and mainland Portugal. Six met the requirements set out in the tender rules and were invited to submit non-binding offers, although the company has not disclosed their identities.
The offers must include a financial proposal stating the euro price for the shares, the bidder’s contribution to the airline’s capitalisation, the terms and timetable for that funding, and how the buyer would secure the financing needed for the deal. Interested parties must also submit a technical proposal with a strategic plan for the company, including how they would support the Azores hub and air links between the autonomous region, mainland Portugal and the Azorean diaspora.
After the bids are received, SATA Holding must prepare an evaluation report for the privatisation’s independent supervisor, economist Augusto Mateus, who will issue an opinion to the board before selected bidders move to the binding-offer stage. The regional government launched the new sale process in March through a private negotiation rather than an international public tender, after moving Azores Airlines’ historic liabilities to SATA Holding to make the asset more attractive.
The sale is part of commitments made under a restructuring plan approved by the European Commission in June 2022 following state aid to the SATA group, which totalled €453.25 million. Separately, SATA is also preparing the full sale of its handling business, which has received 11 expressions of interest.
Originally published at Eco.pt
