Portugal expects the planned sale of a 44.9% stake in TAP Air Portugal to a strategic partner to raise about €1.12 billion to €1.24 billion, as the privatisation moves towards a decision later this year. The state will keep at least 50.1% control and has set aside 5% for workers, with Air France-KLM and Lufthansa among the finalists after binding bids were filed in July.
Prime Minister Luís Montenegro told a political event in southern Portugal that the transaction should be much more favourable than initially expected, with the state potentially recovering part of its investment through the sale and future dividends. The estimate is based on an equity valuation of roughly €1.95 billion to €2.07 billion.
That would still leave more than €2.1 billion of the roughly €3.34 billion in public support to TAP unrecovered before any later dividend flows or performance-related payments. Parpública is due to assess the bids and submit a report to the government, with a decision anticipated around September and completion subject to regulatory approvals.