The government has initiated steps for the sale of the airline following the approval of a decree-law, which now awaits the President’s promulgation. The goal is to submit the terms of sale to the Council of Ministers within 15 days, according to the Minister of Infrastructure, Miguel Pinto Luz, during a press briefing.
Once Marcelo Rebelo de Sousa promulgates the decree-law, a 60-day pre-qualification phase for interested parties will commence. In October 2023, the President vetoed the document prepared by António Costa’s government aimed at kickstarting TAP’s privatization.
At that time, Marcelo Rebelo de Sousa returned the diploma, approved by the Council of Ministers on September 28 of that year, citing “multiple doubts and reservations concerning the desired maximum transparency of the process.”
Following the exploration phase, candidates will have 90 days to submit non-binding proposals. However, this period is indicative and subject to evaluation by the Council of Ministers, as is the third phase involving the submission of binding proposals, also projected for 90 days.
Subsequently, if more than one bid is considered attractive, a negotiation phase will take place for the sale of up to 49.9% of the airline’s capital.
The sale will be conducted via direct sale, with up to 5% reserved for employees, as stipulated by privatization law. The buyer will have preference for any shares not subscribed by employees.
“We believe the operation will conclude within a year,” stated Miguel Pinto Luz, noting that the timeline depends on the European Commission’s Directorate-General for Competition (DGComp) approving the transaction.
The terms will also ensure that the government can exit the process without penalty if the proposals are unsatisfactory.
The government is withholding estimates of proceeds from the TAP sale to avoid affecting the transaction.
“We will not disclose sensitive information that could disadvantage the state’s negotiating position. We will wait for the proposals,” the minister added.
Parpública, manager of state holdings, will prepare an analysis report of the proposals for the Council of Ministers’ review. Additionally, a special oversight committee chaired by Daniel Traça, former director of Nova School of Business and Economics, will be established.
The committee aims to support the government in pursuing transparency, rigor, and impartiality throughout the reprivatization process.
Luís Cabral and Rui Albuquerque will also join this group.
The decree-law’s approval in the Council of Ministers marks the first step in resuming the sale of TAP, bringing private shareholders back after the government nationalized the airline in 2020 due to the pandemic’s impact on air travel.
The airline’s reprivatization has been under consideration since 2023 but stalled due to the fall of the last two PS and PSD governments.
Initially state-owned, TAP was partially privatized in 2015, but the process was reversed in 2016 by António Costa’s government, which reacquired 50% of the company.
Last year, Luís Montenegro’s government revisited the topic, expressing intent to sell a minority stake by 2025. Negotiations have since been underway with major European groups like Air France-KLM, Lufthansa, and IAG.
[News updated at 8:13 PM]
