Air France-KLM has built a share-swap option into its binding offer for a 44.9% stake in TAP Air Portugal, giving the Portuguese state the choice of taking part or all of the consideration in Air France-KLM shares rather than cash. The structure sets the Franco-Dutch group apart from Lufthansa as Portugal moves deeper into the privatization process for its flag carrier.
The sale is being handled through Parpública, the state holding company, after the government judged the two binding bids too close on price to separate immediately. Portugal is seeking a strategic investor for TAP while keeping control of the airline, with up to 49.9% available for sale and 5% reserved for employees.
The share-swap feature would give Lisbon flexibility over how it is paid, while also leaving open the option to later sell the Air France-KLM shares on the market or retain them as an investment. Negotiations are expected to continue until the end of September, after which revised final offers are due and Parpública is expected to carry out another assessment before a decision is taken.