Three major airlines are interested in privatizing TAP. What are the most attractive assets of the Portuguese operator
TAP Air Portugal plane, Photo: Tommy Beattie, Dreamstime.com
Portugal's state holding company Parpublica announced on Saturday that only three potential investors have expressed their interest in acquiring a minority stake in the Portuguese airline TAP, reports Reuters, reported by Agerpres.
In a press release, Parpublica did not reveal the identity of the potential investors who officially expressed their interest in TAP. However, the only companies that have so far publicly confirmed that they are interested in the Portuguese airline are: Air France-KLM, Lufthansa AG and IAG SA, the owner of British Airways.
In July of this year, Portugal relaunched the privatization of TAP, after several delays, seeking to sell a 44.9% stake to an airline capable of increasing the scale and global competitiveness of the Portuguese carrier, with an additional 5% package to be offered to TAP employees.
Portuguese Prime Minister Luis Montenegro said in July that the government expects TAP's privatization to attract the interest of major airlines outside the European Union, citing the carrier's untapped potential.
The deadline for airlines to formally express their interest ended on Saturday at 17:00 GMT. Parpublica stated in its press release that by December 12 it will evaluate whether the interested airlines meet the criteria, including the one related to at least one year with revenues over five billion euros in the last three years as well as the financial capacity.
Non-binding offers would be submitted by mid-March 2026, followed by binding offers detailing the price and a strategic plan for TAP. The privatization of the Portuguese airline is expected to be completed in the second half of 2026.
TAP's most attractive assets are its connections to Brazil, Portuguese-speaking African countries and the United States from its hub in Lisbon, which the government wants to retain and expand.
Bernstein analysts estimate that a 44.9% stake in TAP is worth at least 700 million euros, based on a 1.5 billion euro valuation for the entire company. They also said that TAP's value benefits from a premium of approximately 25%-30% compared to European competitors, justified by TAP's strategic growth potential.
