Portugal to sign TAP sale deal with Lufthansa Tuesday

Portugal’s government will sign the contract on Tuesday to sell up to 49.9% of TAP to Lufthansa, in a key step in the airline’s privatisation that could also pave the way for a later sale of the state’s remaining stake. Infrastructure Minister Miguel Pinto Luz said in parliament on Monday that the government also wants political talks on privatising the other 50.1%.

The cabinet approved the sale on October 14. Under the deal, 5% is earmarked preferentially for employees, while Lufthansa will become the Portuguese carrier’s industrial partner. The German group beat Air France-KLM with a €1.201 billion offer and a commitment to raise TAP’s fleet to 130 aircraft.

According to a schedule note sent by the Infrastructure Ministry, the contract signing will take place on Tuesday. Pinto Luz said the process would then move to the European Commission’s competition arm for any remedies required by the transaction, adding that the government expects the EU review and closing to be faster than in the past.

The minister again argued for a second phase covering the remaining 50.1% of TAP, saying both bidders had submitted proposals on that basis. Lufthansa proposed €863 million for the rest of the capital and offered a 5% stake in the Lufthansa Group valued at €488 million. Across both phases, Lufthansa’s proposal values TAP at €2.552 billion.

Originally published at Eco.pt