TAP Portugal (Lisbon) is to be opened up to private investment once more after the Portuguese government announced plans to dispose of up to 66% of its shareholding in the carrier.
Speaking in Lisbon, Portugal's Secretary of State for Infrastructure, Transport and Communications, Sérgio Silva Monteiro, said up to 61% of TAP will be sold to private investors with 5% reserved for staff.
"After the privatization of TAP, the private entity which controls 61% of the airline's shares will assume responsibility for its financial liability and obligations including recapitalization," he told a press conference. "This sale aims to shore up both the airline's capital and its ability to become stronger. With the new investor having assumed TAP's liability of EUR1billion, the state will no longer have financial responsibilities, which is also crucial for taxpayers."
Though government will initially retain a 34% stake, it may exercise an option to dispose of it two years after the privatization process is completed.
Investors that have already expressed an interest in the airline reportedly include Air Europa parent, Globalia Corporacion, Delta Air Lines, Virgin Atlantic, Lufthansa, and British Airways-parent, the International Airlines Group (IAG).
TAP's privatization was mandated as part of the terms of a 2011 EUR78billion (USD101billion) bailout package Portugal signed with the European Commission, the International Monetary Fund and the European Central Bank.
Lisbon's first attempt at privatizing TAP in late 2012 collapsed after sole bidder, Brazil's Synergy Aerospace, failed to provide the requisite financial guarantees. The Avianca parent had bid EUR35million (USD46.5million) for TAP, and was to have invested EUR316million in the company while taking on its estimated EUR1.2billion debt.
