Portugal targets mid-October decision on TAP sale

Portugal’s government expects to announce the buyer for a 44.9% stake in TAP in mid-October, ECO has learned, setting a timetable for the final stage of the airline’s privatisation and a decision with implications for the country’s aviation sector and public finances.

After judging the binding offers from Air France-KLM and Lufthansa to be broadly equivalent, the Council of Ministers decided to invite both groups into a further negotiation round for improved final bids. That phase will last three weeks, after which both bidders will submit revised offers and state holding company Parpública will prepare a new evaluation report for the government.

According to a source close to the process, the government will announce the future buyer after presenting the state budget. Presidency Minister António Leitão Amaro said last week the process was moving ahead “with speed, in the higher national interest” and on a timeline of “weeks, not months”.

The sale process does not end with that decision. The government must still approve the contractual documents prepared by Parpública, including the share purchase agreement and shareholder arrangements, before sending draft contracts to the selected investor. The winner will also need regulatory clearances, including from the European Commission, meaning the transaction is expected to close only in 2027.

Under the current structure, the state is selling up to 49.9% of TAP, with 5% reserved preferentially for employees. Payment to the state — which would reduce public debt — and the transfer of the shares will take place only after Brussels approves the deal.

Originally published at Eco.pt