The Secretary of State for Transport, Sérgio Monteiro, today announced a submission deadline of May 15 for those interested in buying Portugal’s national airline, TAP.
Monteiro said the privatisation of TAP is being done on behalf of "the future of TAP and its employees."
Many had assumed the sale was to raise money for the treasury in accordance with the privatisation plan agreed with the Troika, but Monteiro says otherwsie, it's to keep the staff employed and the airline flying.
The Secretary of State’s announcement was made in parliament during a frank exchange of views between the government and the Left Bloc on the sell-off and the wider destruction of publically owned transport services.
"May 15th marks the date for the submission of binding proposals for the acquisition of TAP," said Monteiro, adding that as from today, those wishing for details could access a special website containing full and transparent data about the airline, its strategy and finances.
The strict terms and conditions specify the government initially will sell only 66% of the airline, 61% to an investor or investors, with 5% set aside for TAP employees. The government retains the right to sell the final 34% within two years at a price dependent on how well the airline has performed under new management.
The 61% share can be acquired by "a domestic or foreign individual or group of investors who formulate an intention to acquire the shares with a stable, long-term investment perspective and with proper capitalisation of the company and who identify with the goals set for this privatisation process and with a view to the strategic development of TAP, SGPS, SA."
In November 2014, Monteiro said that "a private entity that has a 61% stake will assume the financial liability and obligations and will have to recapitalise the company,” adding that the money raised from the TAP sale is not important, "That's not what motivated us at the time and that is not what drives us now."
What is important, stressed Monteiro after a November 2014 Council of Ministers meeting, “is that the buyer has in mind the competitiveness of the economy and tourism in Portugal. This sale process aims to increase the capital of the airline and its ability to invest and become stronger. The truly important thing is that the private investor assumes the billion euro liability of TAP."
Monteiro today left his options open by saying that if the government terms and conditions are not met, the government has the option of pulling the sale, as it did last time when the Germán Efromovich bid was rejected largely on spurious technical grounds - and to save exposing Minister Relvas, but that's another story.
Sergio Monteiro said that with the announcement of the deadline and the launch of the website, the government’s objective is clear – it wants to sell the state owned airline by the end of June.
