Portugal selects Lufthansa for 44.9% TAP stake

Portugal has selected Lufthansa to acquire a 44.9% stake in TAP Air Portugal, in a first privatisation phase valued by the government at €1.201 billion. The transaction requires approval from European Union regulators before it can proceed. Prime Minister Luís Montenegro said Lufthansa’s offer was 16% higher than the competing bid from Air France-KLM, the only other bidder. The government said it chose the German airline after considering both the financial offers and their plans for TAP’s growth and long-term sustainability. Under the announced allocation, the Portuguese state will retain a 50.1% majority stake, while 5% of the company’s shares have been set aside for employees to purchase. Lufthansa is to take responsibility for executive and operational management, according to Montenegro. The government has also said that Lufthansa may acquire any employee shares that are not taken up. The €1.201 billion figure represents proceeds for this first phase. Montenegro separately put TAP’s total valuation under the offer at €2.552 billion. He said the government expects the airline’s full privatisation to be completed in 2028, after the required regulatory authorisation.