Lufthansa to become new TAP shareholder, Portuguese government says
Lufthansa has won the race to privatise TAP. The prime minister announced that the airline's first privatisation phase has now been completed.
The Portuguese government declared, following Wednesday's cabinet meeting, that German airline Lufthansa will become TAP's new majority shareholder as part of the country's national carrier's privatization process. Prime Minister Luís Montenegro stated that the government had opted for Lufthansa due to their financially superior bid, which was 16% higher than the competing offer and featured a reduced level of risk.
The transaction is expected to generate 1.201 billion euros in this initial phase, with the state maintaining a majority stake of 50.1% in the company. Lufthansa will be tasked with executive and operational management. Montenegro emphasized that the acquisition brings TAP's total valuation to 2.552 billion euros, significantly higher than previous valuations.
The deal includes investments in TAP's fleet expansion, infrastructure, and employment, with the airline aiming for 117 aircraft by 2035, 130 by 2035, and the creation of 5,500 jobs. Air France-KLM and Lufthansa had submitted their final bids in September, with Lufthansa ultimately winning the competition. The remaining 49.9% of TAP's shares will remain with the Portuguese government.
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