Air France-KLM to submit “strongest possible” binding bid for stake in TAP

Air France-KLM will submit a binding offer by late July or early August for a minority stake in TAP, the group’s chief executive Ben Smith said on Thursday, in a key step in Portugal’s privatisation of the airline.

Speaking after the group’s first-quarter results, Smith said Air France-KLM would present “the strongest offer possible” and described Lisbon as strategically important to strengthen the group’s position in Latin America. He also said the war in the Middle East and the energy crisis do not, for now, change the terms or value of the offer.

Chief financial office Steven Zaat said the airline group will now carry out a detailed financial and legal review before submitting its binding bid. Portugal’s government approved on April 23 a formal invitation for Air France-KLM and Lufthansa to move ahead with binding offers, following a recommendation from state holding company Parpública.

According to the information disclosed by the government process, Air France-KLM and Lufthansa were the only groups to submit non-binding proposals by the April 2 deadline for the purchase of 44.9% of TAP, plus 5% for employees. Smith also said IAG’s withdrawal from the process was positive, although Lufthansa remains a strong rival.

Originally published at Eco.pt