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The legislative decree that initiates the reprivatization process of TAP has been approved by the Portuguese Council of Ministers. In this process, the government determined that it intended to sell at least 51% of the company’s capital and reserve up to 5% for employees.
“The privatization of TAP is justified as long as we can increase the company’s contribution to the country’s economic growth,” reiterated Finance Minister Fernando Medina.
The government’s goal through this process is to uphold five strategic principles:
1. The growth of TAP;
2. The growth of the national hub in Lisbon;
3. Ensuring investment and employment in highvalue activities in the aviation sector;
4. Ensuring the growth of pointtopoint operations utilizing the unused capacity of national airports, with a focus on Porto Airport;
5. The value offered for the acquisition of the company’s shares with the aim of maximizing the country’s financial return.
As for the buyer’s profile, “we are very clear,” says the Finance Minister: “We want major investors in the aviation sector, either alone or in consortia led by them, that are in line with our strategic objectives.” We do not intend to make investments of a purely financial nature to attract those who aim to get into TAP and then sell it, or else be able to sell parts and ultimately deprive TAP of its strategic contribution to the country.”
The Minister of Infrastructure, João Galamba, stressed that “this is the right time to start this process”, pointing to the “frankly positive” results of TAP and the good moment in the aviation sector, where there is a great need for process consolidation .
Now begins the process of selecting the strategic, financial and legal advisors who will advise the State in this operation, as well as the process of market consultation and dialogue with potential reference investors in the sector.
The aim will be to present to the Council of Ministers at the end of 2023 or at the latest the beginning of 2024 the specifications that will define in a more “fine” way the implementation and consideration of the strategic values the government defines as priorities, said Fernando Medina.
In the past, TAP was privatized, with 49% of the company held by a consortium led by David Neeleman through TAP shares acquired from Azul. However, due to various government interventions in management and the crisis caused by the pandemic, the deal was canceled and the airline was renationalized.
With information from the Portuguese government