TAP – Air Portugal and Geocapital may be partners in aviation again

18 January 2006

Macau, China, 18 Jan – TAP – Air Portugal and Geocapital, owned by Stanley Ho and Jorge Ferro Ribeiro, may return to being partners in the aviation business by sharing a stake in Air Macau after both having a stake in Brazil’s Varig, Macau newspaper, Macau Ponto Final, reported Wednesday.

The paper said that Geocapital and TAP had been in touch over the last few months about the potential sale of the 20 percent TAP owns of Air Macau but, apparently, had been unable to reach agreement on the value of the stake.

If they did not come to an agreement, the paper said, it was possible that the terms of the deal could be changed and TAP may share its Air Macau stake with Geocapital through a holding company created specifically for that purpose.

A TAP spokesperson had told Macauhub that the company was willing to sell its Air Macau stake if a “good” financial proposal was put on the table.

Macau Ponto Final added that the sharing solution would be ideal for both Geocapital and TAP. TAP would gain funds to balance its accounts, would not withdraw from the Asian market and would not have to dedicate so many human resources to the deal.

Macau company Geocapital, bought two subsidiaries of Brazilian air carrier Varig in partnership with TAP, maintenance company VEM and cargo company Varilog.

VEM is currently being run by TAP while the second has been taken over by US investment fund Matlin Patterson. (macauhub)