The tender specifications for the privatization of 44.9% of TAP provide for the possibility of the Portuguese State receiving shares of the acquiring group as partial or total consideration for the sale. According to Jornal Económico, only Air France-KLM contemplates this option in its binding proposal, while Lufthansa does not include this alternative. Air France-KLM declined to comment on the financial details of the proposal, keeping them confidential.
The Government will now negotiate bilaterally with the two candidates, Air France-KLM and Lufthansa, with the aim of obtaining improved proposals. The Minister of the Presidency, António Leitão Amaro, explained that the proposals present valuations so close that they justify a final negotiation period of a few weeks with both competitors, aiming to maximize the possibilities for the Portuguese State. Negotiations run until the end of September, followed by new revised proposals and a new evaluation report from Parpública.
The prediction is that the winner of the privatization will be known in mid-October, after the delivery of the State Budget to Parliament by October 10. Lufthansa has the advantage of belonging to the same Star Alliance as TAP, which could facilitate synergies and greater value creation. If Air France-KLM wins, TAP would have to migrate to SkyTeam, a potentially complex process.
In favor of Air France-KLM is the experience of operating with state participation, since the French and Dutch States are shareholders of the group. This experience could be relevant in managing TAP, given that a minority stake is being sold, with the State retaining the majority.
