Lufthansa Group has issued a statement welcoming its selection by the Portuguese government in the privatization process for TAP Air Portugal.
Lufthansa Group intends to support TAP Air Portugal’s growth through the acquisition of a minority stake, while maintaining the airline’s national identity and sustainably strengthening Portugal’s connectivity, particularly with North America and Latin America.
The offer amounts to EUR 1.025 billion for the acquisition of a 44.9% stake, and could increase to as much as EUR 1.2 billion for a stake of up to 49.9%.
Lufthansa Group also welcomed the Portuguese government’s announcement that it would begin procedures toward full privatization, stating that, based on its past acquisition experience, obtaining a majority stake would generate additional benefits for all stakeholders. The group is working with the Portuguese government and state-owned holding company Parpública to finalize transaction documents and expects to soon conclude an agreement for the share acquisition. Completion of the acquisition is subject to approval by the relevant authorities.
Carsten Spohr, Chairman of the Executive Board and CEO of Lufthansa Group, commented: “TAP Air Portugal is a strong and profitable airline, a long-standing partner in Star Alliance, and an internationally successful leading carrier on South Atlantic routes.” He added: “With this decision, the Portuguese government has paved the way for TAP Air Portugal to continue its successful journey together with Lufthansa Group. At the same time, we can consistently advance our internationalization strategy and sustainably strengthen our position in the South Atlantic market.”
Lufthansa Group has operated in Portugal for more than 70 years. Its group airlines currently operate 353 weekly flights to six cities in Portugal. Capacity has increased by 75% compared with 2019. More than 500 people work for Lufthansa Group companies in Portugal, and the group expects to increase direct employment to more than 1,000 by 2030 through Lufthansa Technik’s new facility in Santa Maria da Feira, near Porto, where construction began in June.
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