Lufthansa to become new TAP shareholder, Portuguese government announces
Lufthansa has won the race to privatise TAP. The prime minister has announced that the first phase of the airline's privatisation is complete.
The Portuguese government announced, following Wednesday's Council of Ministers meeting, that Lufthansa will become the new shareholder in TAP, as part of the process to privatize the airline. Prime Minister Luís Montenegro stated that the government had completed the initial phase of privatization with rigorous competition, firm negotiating discipline, and complete transparency before the Portuguese public.
Lufthansa's financial offer was 16% higher than the competing proposal and had a lower degree of uncertainty. The deal brings a cash inflow of 1.201 billion euros in the first phase, with the state retaining a 50.1% majority stake. Lufthansa will assume executive and operational management responsibilities. Montenegro highlighted an ambitious strategy for the aviation sector, including infrastructure improvements, fleet expansion, increased passenger numbers, more destinations, and higher investment levels.
The offer also includes investments in a new pilots' school, an innovation center, a corporate services center, and increased jobs. The privatization process, expected to take 18 to 24 months, will be completed by 2028 after European Commission approval.
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