The International Airlines Group (IAG) delivered to Parpública a declaration of interest in the TAP privatization process, the group that owns British Airways and Iberia announced this Friday, one day before the end of the defined deadline.
“IAG confirms that it presented a declaration of interest to Parpública within the scope of the Government’s process for the partial privatization of TAP. However, several issues need to be clarified before IAG can propose an investment“, says the group’s official source in a statement released today.
The Government plans to sell up to 44.9% of the air carrier’s capital, reserving 5% for workers, as stipulated by the Privatization Law. If this tranche is not fully subscribed, the future buyer will have the right of first refusal.
Considering that “TAP will have significant potential within IAG”, the group argues that its “decentralized model provides sector-leading margins and is in line with the Portuguese Government’s ambition to protect TAP”.
“Our track record demonstrates how we invest to strengthen our airlines, benefiting customers, employees, local economies and shareholders”, he maintains.
Parpública will have 20 days to deliver report
From November 22nd, Parpública, the company that manages the State’s holdings, has a period of 20 days (until December 12th) to deliver to the Government a report that describes the interested parties who expressed interest and that assesses compliance with the participation requirements.
Within 20 days from the date the report is made available, interested parties who have demonstrated compliance with the requirements are invited to submit a non-binding proposal.
This second phase of the process, which will be divided into four stages, provides that the proposal includes, among others, the price offered for the acquisition of shares and information on how to obtain the financial means necessary to complete the purchase.
National or foreign operators may submit applications, individually or in a consortium, as long as they meet the defined criteria, including revenues exceeding 5,000 million euros in at least one of the last three years and proven experience in the aviation sector.
The proposals will also be evaluated by strengthening the fleet, investing in maintenance and engineering, investing in sustainable fuels, respecting labor commitments and vision regarding a possible strengthening of the shareholder position, according to the recently published specifications.
As the Government announced in July, the privatization of TAP – which also includes Portugália, the TAP Health Care Unit, Cateringpor and SPdH (formerly Groundforce) – is expected to take place over the course of around a year, although the final schedule depends on regulatory authorizations.
