The Portuguese government has officially selected Gateway, a joint-venture between JetBlue Airways (B6, New York JFK) and Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos) founder David Neeleman and Portuguese bus company Barraqueiro Group, to acquire a 61% stake in the country's national carrier, TAP Portugal (Lisbon).
Secretary of the Treasury, Isabel Castelo Branco, told a press conference in Lisbon on Thursday that the sale should generate between EUR354 million (USD488 million) and EUR488 million (USD548.5 million) for the country's coffers depending on the carrier's performance.
Branco went on to explain that the transaction's full value will only be realized in two years time adding that the current valuation is based on market capitalization, share price, and buy/sell stock options.
Gateway's revised offer, in addition to being the best suited to TAP's short-term needs, also has provision for the recapitalisation of the TAP group whose total debt is estimated to stand at EUR1.4 billion (USD1.54 billion) as well as a provisional valuation for government's remaining 34% stake.
Once the privatization process is completed, Lisbon may exit the TAP Group completely after 2017.
Gateway will also add fifty-three aircraft to TAP's existing fleet of seventy-seven while developing an alliance with Azul. It will also seek to enhance TAP's Lisbon hub.
As such, the acquisition will now be scrutinized by the European Commission (EC) to ensure all aspects conform with European regulations concerning ownership and competitiveness.
