Hainan Airlines will have seat on the board of TAP Air Portugal

20 July 2016

Hainan Airlines acquired 25% of the issue of TAP – Air Portugal convertible bonds for 30 million euros, announced the Chinese company in a statement Tuesday.

This transaction, carried out through Azul (David Neeleman’s Brazilian company that is part of the Atlantic Gateway consortium, a TAP shareholder), allows the Chinese group to increase its stake in TAP to 23% and gain a seat on the Portuguese airline’s board of directors.

The Chinese group recognised in the statement that the financial situation of the Portuguese airline is not “optimistic” but noted the strategic significance of the deal.

The issue of bonds convertible into TAP SGPS shares approved in March had two series, the first of 90 million euros subscribed by Brazilian airline Azul and the second, 30 million euros, subscribed by Portuguese state stakeholding company Parpública SGPS or by Azul.

The second series was subscribed by the state through Parpública, completing the placement of the issue proposed in the Memorandum of Understanding between the Portuguese State and the Atlantic Gateway consortium, as part of the flagship airline’s privatisation process. (macauhub/BR/CN/PT)