By Sergio Goncalves LISBON, April 23 (Reuters) - Portugal's government on Thursday asked Air France-KLM and Germany's Lufthansa to submit binding bids for a minority stake in flag carrier TAP, setting
Portugal asks Air France‑KLM, Lufthansa for binding bids in tight TAP race
Portugal's Privatisation of TAP: Final Bidding Phase
By Sergio Goncalves
Background and Privatisation Goals
LISBON, April 23 (Reuters) - Portugal asked Air France-KLM and Germany's Lufthansa to submit binding bids for a minority stake in national flag carrier TAP on Thursday, setting up a tight final contest following closely matched initial offers from the European airline groups.
The Portuguese government revived TAP's long-delayed privatisation in July, aiming to sell a 44.9% stake to a strategic airline partner to strengthen its global network and competitiveness, while reserving a further 5% for employees.
Timeline and Bidding Process
Lisbon will send out formal invitations to the two airlines, which were the only ones to make initial offers, by the end of April and they will have to submit binding bids by the end of July. The process is expected to conclude by early September.
Details of the Initial Offers
Air France-KLM and Lufthansa submitted non-binding offers earlier this month, including a proposed price for the TAP stake, along with industrial and strategic plans and expected synergies. No details were revealed.
Government's Assessment of the Bids
Infrastructure Minister Miguel Pinto Luz said the two bids were "largely equivalent and very ambitious" in strategic, industrial and financial terms, leaving the government comfortable with TAP's valuation.
Financial Valuation as a Decisive Factor
"With proposals that close, meeting all dimensions, the financial valuation of TAP may naturally end up playing a decisive role. We will wait for the binding offers," Pinto Luz said at a news conference.
Statements from the Bidders
Lufthansa said in a statement it intends to submit a "solid, attractive and competitive" binding offer, citing its "strong interest" in TAP.
Air France-KLM reiterated in a statement its "strong and continued interest in TAP", adding that it aims to "make Lisbon its unique Southern European hub and to integrate TAP following the group’s unique approach to consolidation, which prioritises cooperation within a clear framework".
TAP's Strategic Importance
TAP's key appeal lies in its prime and lucrative slots connecting its Lisbon hub with Brazil, Portuguese-speaking African countries and the United States.
(Reporting by Sergio Goncalves; editing by Andrei Khalip and Alexander Smith)
