The Government says it really is looking for buyers for state airline TAP next year, and want to sell of most of the Post Office in December this year.
The report from the International Monetary Fund (IMF) on the eighth and ninth assessments of Portugal’s adjustment programme shows that revenue of €500 million is expected in 2014 from the sale of Portugal’s publically owned assets.
In the pipeline is the sale of a majority stake of the Post Office (CTT), water company Águas de Portugal Group, and the balance of REN shares still held after the sale of most of the electricity distributor to the Chinese.
In the case of the post office, the government aims to float off 70% of the company on the stock exchange. The operation needs to happen before the end of the first week of December if it it to be any use at all in this years national accounts.
Regarding Águas de Portugal, a letter of intent from the Portuguese Government that accompanies the IMF report stated that the proposed sale is in the first quarter of 2014.
The letter of intent also states that the government is looking for buyers for TAP. The first attempt to privatise the company collapsed in December 2012 with the rejection of the single offer made by the only candidate, Gérman Efromovich.
The executive says it wants to sell off TAP along with its associated businesses including a basket case maintenance company in Brazil.
"The sale of TAP is still on stand-by after the initial privatisation plan failed in late 2012 due to the inadequate presentation of financial guarantees by the buyer," explains the government using its standard excuse. In fact the buyer had not been asked for any guarantees as part of the bidding process, and allegations of ministerial corruption had surfaced, making the aborted sale a politically astute move by the Passos Coelho government.
The law of unintended consequences is in play with TAP as the chaotic and poorly handled sale process to date means that the company now is worth more than a year ago, having produced good trading figures throughout 2013.
