Macau, China, Dec. 3, 2025 (Lusa) - Portugal's Secretary of State for Infrastructure on Wednesday praised the fact that, for the first time this century, the privatisation of TAP had attracted the interest of Europe's three leading airline groups.
"Never in the three privatisations of TAP this century have the three leading European airlines been interested, and actively interested, in TAP. And so that makes me feel comfortable that the next eight months of pain for Luís [Rodrigues, CEO of TAP] will result in something good for all of us here," said Hugo Espírito Santo in Macau.
On 22 November, the state-owned company Parpública confirmed that it had received "three expressions of interest" in the privatisation of TAP, with the deadline for applications closing at 4:59 pm that day.
The state-owned company responsible for managing the state's holdings did not indicate in the statement which companies were interested. Still, the interest of Air France-KLM, Lufthansa and International Airlines Group (IAG), owner of British Airways and Iberia, had already been formally confirmed.
"TAP has to be with the big players. TAP has to join a large group with more than five billion in revenue. This is very important. For its future, we have three that have expressed interest, that is, it is public, they have announced themselves (...) and it is noteworthy that this is the first privatisation of the three that have been attempted this century in which we have the three major European groups participating," the minister said in Macau at the 50th National Congress of the Portuguese Association of Travel and Tourism Agencies (APAVT).
Hugo Espírito Santo said that "at the end of eight months" the first decision should be made and that this will probably lead to negotiations and then the presentation of the report.
"I think we should have a first decision in July," he added.
Once the deadline for expressions of interest has passed, Parpública will analyse the applications until 12 December and prepare non-binding proposals in this process, which provides for the sale of up to 44.9% of TAP's capital, with 5% reserved for employees.
In July, the government estimated that the privatisation process of TAP — which also includes Portugália, TAP Health Care Unit, Cateringpor and SPdH (formerly Groundforce) — would take about a year. However, the final timetable depends on regulatory approvals.
Parpública will prepare a report describing the interested parties and assessing whether they meet the requirements set out in the specifications.
These criteria include revenues exceeding €5 billion in at least one of the last three years, proven experience in the aviation sector, and financial capacity and suitability.
Following this assessment, successful candidates will be invited to submit non-binding proposals within a maximum period of 90 days.
These proposals must detail the purchase price of the shares, how the necessary financial resources will be obtained, investment plans to strengthen the fleet, maintenance and engineering, a commitment to sustainable fuels, respect for labour commitments, and a strategic vision for a possible increase in shareholding.
After the non-binding proposal phase, Parpública has 30 days to prepare a new report to submit to the Government.
If clarifications are requested from the bidders, the deadline is suspended until a response is received or the set deadline expires.
Based on Parpública's report, the cabinet selects the most suitable applications and invites the chosen bidders to submit binding proposals in the third stage of the process, with a maximum deadline of 90 days.
This stage involves conducting information gathering and submitting binding proposals within 90 days of the invitation date.
The cabinet may specify in the invitation letter a deadline for the submission of binding proposals of less than 90 days.
After the submission of binding proposals, Parpública has 30 days to prepare a final report, which the cabinet may extend upon reasoned request.
Based on this document, the best proposal is selected, or a negotiation phase may be initiated for the submission of improved and final binding proposals.
Once the selection has been made, the cabinet approves the final drafts of the sales contracts, which the buyer must sign within 15 days.
The State then convenes a general meeting of TAP to approve the resolutions necessary to complete the privatisation and implement the agreed industrial and strategic plan.
If the 5% tranche allocated to employees is not fully subscribed, the future buyer will have the right of first refusal.
*** The Lusa agency travelled to Macau at the invitation of APAVT *** MSF/ADB // ADB.
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