Air France-KLM and Lufthansa have submitted initial offers to buy a 44.9% stake in TAP Air Portugal, with the price expected to range between 1 billion euros and 1.2 billion euros, according to Correio da Manha.
The figures put forward by the two rival bidders are higher than TAP's own valuations. Even so, they would allow the Portuguese state to recover only a third of the 3.2 billion euros it injected into the airline between 2021 and 2025.
State support and EU approval
That funding was channelled through a restructuring plan for TAP that was approved by the European Commission during the government of then Prime Minister Antonio Costa. The plan set out the terms under which Lisbon could keep supporting the airline financially while it worked to return to stable footing.
TAP is Portugal's national airline and operates its main hub at Lisbon Airport, connecting Europe with destinations across Africa and South America, particularly former Portuguese colonies such as Brazil.
Two rival European groups
Air France-KLM is a Franco-Dutch airline group formed by the merger of Air France and KLM, and is among the largest airline holding companies in Europe. Lufthansa is Germany's largest airline group, with a network spanning Europe and long-haul routes worldwide.
The two groups are now competing for a minority stake in TAP as part of the process to bring in a new investor for the airline, a move that would give either Air France-KLM or Lufthansa a foothold in the Portuguese market and access to TAP's transatlantic routes.
Gap between offer and bailout
The initial offers, while above TAP's own valuations, underline the scale of the financial support the Portuguese state has provided to the carrier since 2021. Covering only a third of the 3.2 billion euros injected over that period, the bids highlight the gap between what the state spent keeping TAP afloat and what a buyer is now prepared to pay for a stake in the restructured company.
The report was written by Correio da Manha's senior reporter, Antonio Sergio Azenha.
