Deutsche Lufthansa AG and Air France-KLM have submitted binding offers for a minority stake in Portugal's state-owned airline TAP SA. This development sets up a competition between the two major aviation groups for a highly sought-after asset, primarily due to TAP's access to key markets like Latin America.
The bids for one of Europe's last mid-sized airlines still available on the market were lodged on Wednesday, the final day of the deadline. This information was confirmed by the Portuguese state holding company Parpública, validating an earlier report by Bloomberg News.
The Portuguese government recently received Parpública's assessment of these rival binding bids. This is a crucial step towards a final decision regarding the sale of a 44.9% stake in the flag carrier, with the government aiming to complete the privatization process this year. The government will now analyze the assessment and plans to make its position known in due course. The final decision will not solely be based on price but will also consider which bidder is best positioned to expand TAP's international footprint and enhance its competitiveness. Analysts at Bernstein have valued the 44.9% stake at approximately €700 million (equivalent to about $798 million), suggesting a total valuation for TAP of €1.5 billion.
