Bloomberg breaks news as stories pepper media on ‘other issues’ involving TAP
Portugal’s government is considering selling at least 49% of the share capital of national flag carrier TAP, in a long-planned privatisation process that is expected to start in March and could be completed by the first half of 2026.
This is the gist of media reports today following an article by Bloomberg News, citing sources ‘close to the process’.
At the same time, other issues pepper the media, particularly today’s report that former TAP shareholder Azul Airlines is still hoping for a €90 million loan repayment.
Lusa reports the news from Bloomberg, without referring to the Azul issue (which it writes about in a separate piece today).
The state news agency goes over the old ground of “Europe’s three largest airline groups – Lufthansa, Air France-KLM and IAG” all having “expressed their interest in buying some or all of the shares on offer”, while other media reports cite sources who predict poor outcomes if this happens.
It is difficult to see what the real situation is: particularly what ‘values’ are being bandied about (bearing in mind the state ploughed over €3.2 billion into TAP just in the last few years…)
Certainly stories of court decisions that could see TAP paying over 1,000 former members of staff up to €300 million for illegal contracts, indemnifying thousands of passengers for flight delays and the €90 million loan repayment awaited by Azul, will not enhance TAP’s perceived value.
There is also the matter of the lawsuit for unfair dismissal lodged by former TAP CEO Christine Ourmières-Widener.
Lusa adds that Azul clarified in October last year that “with the move towards a possible privatisation of TAP, the emptying of the TAP group company that signed the loan and the emptying of the debt guarantees, (the Brazilian airline) has hired a law firm in Portugal to ensure that (…) the debt is repaid in advance”.
Azul, founded by David Neeleman – one of the previous TAP ‘co-owners’ in the first privatisation deal – is seeking to resolve the situation “in a friendly and commercial manner, without ruling out the possibility of taking tougher action” if things do not go Azul’s way.
Lusa adds that “according to the Brazilian press, the debt, which already amounts to 1.2 billion reais (€200 million at the current exchange rate) has to be repaid by 2026”. ND
Source material: LUSA
