Final proposals to buy Portuguese airline TAP submitted by 5 June

29 May 2015

Binding and improved proposals from the two candidates still competing for the privatisation of airline TAP – Portugal must be submitted before 5 pm on 5 June, according to an order from the Portuguese government.

The order from the Finance Minister, published Thursday in the Official Gazette, states that the phase of negotiations with the candidates chosen by the government to present “improved final and binding acquisition proposals” for TAP shares began on Wednesday, 27 May and ends on 5 June.

The Portuguese government decided last week at a cabinet meeting, to continue negotiating the sale of part of the airline’s capital with German Efromovich and David Neeleman, setting aside a proposal from a consortium including Portuguese businessman Miguel Pais do Amaral.

The proposal from Efromovich, owner of air carrier Avianca and the Synergy Group, includes the delivery of 12 new Airbus aircraft after the transfer of the company’s shares and the renewal of the Portugália fleet with Embraer aircraft by 2016. As well as this the businessman proposes to recapitalise the company with 250 million euros, according to press reports.

David Neeleman, owner of Brazilian airline Azul who is a partner of Humberto Pedrosa of Portugal’s Barraqueiro group in the bid for TAP, pledges to add 53 new aircraft to TAP’s fleet and invest 350 million euros.

The bidders are vying for 61 percent of the TAP group, with another 5 percent reserved for employees, totalling 66 percent that the Portuguese government intends to sell at this stage. (macauhub/BR/PT)