The Portuguese Government announced on Friday that it will begin a final phase of negotiations with Air France-KLM and Lufthansa, the two competitors that submitted binding proposals to purchase up to 44.9% of TAP's capital. The Minister of the Presidency, António Leitão Amaro, explained that the two offers have a very close overall evaluation, so the executive decided to move forward with an additional round before selecting a single competitor.
Air France-KLM stated, in a written response to the 'Lusa' news agency, that participation in this phase reflects its firm and unchanged interest in TAP, considering the additional round an opportunity to reinforce its project and demonstrate why its industrial plan is the most suitable to ensure the long-term growth of the airline and the national economy. The Franco-Dutch group expressed confidence in its ability to meet the three-week schedule established, although it refused to comment on details relating to the financial terms of the offer, which it considered strictly confidential.
Lufthansa Group also reacted positively, stating that it values the Portuguese Government's decision to deepen negotiations around the proposal submitted in late July. The German group stated that its objective continues to be establishing a long-term partnership with TAP and Portugal, hoping to proceed with the process constructively in the coming weeks. Like Air France-KLM, Lufthansa did not clarify whether it is prepared to improve the value offered for the stake in the airline.
The privatization process provides for the sale of up to 49.9% of TAP's capital, with 5% reserved for workers. The portion not subscribed by workers may be acquired by the selected investor under a right of first refusal. The two binding proposals were submitted on July 29. The final decision on the investor will still need to be approved by the Council of Ministers and will be subject to authorization from European competition authorities.
