Portugal's state-owned holding company Parpublica announced on Saturday that it received only three non-binding expressions of interest for the minority stake sale of national flag carrier TAP, all from major European airlines, with none from outside the EU—a result falling short of government expectations.
British Airways' parent company IAG, Air France-KLM, and Germany's Lufthansa had previously confirmed submitting formal letters of intent.
In July, Portugal relaunched the long-delayed privatization of TAP, planning to sell a 44.9% stake to an airline capable of expanding its global scale and competitiveness, with an additional 5% allocated to TAP employees.
Prime Minister Luís Montenegro stated in July that the government anticipated interest from major non-EU carriers, citing untapped potential in TAP’s operations.
The deadline for formal submissions was Saturday at 17:00 GMT.
Parpublica stated it would evaluate qualifying criteria by December 12, including minimum annual revenue of €5 billion in at least one of the past three years and sufficient financial capacity.
Non-binding bids are due by mid-March 2025, followed by binding offers with detailed pricing and strategic plans. The privatization is expected to conclude in H2 2026.
TAP’s key asset is its Lisbon-hubbed network connecting Brazil, Portuguese-speaking African nations, and the U.S.—a strategic advantage Portugal aims to preserve and expand.
Bernstein Research analysts estimate the 44.9% stake’s value at €700 million (≈$810 million), based on TAP’s €1.5 billion enterprise valuation. The premium of 25%-30% over European peers reflects TAP’s growth potential.
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