Air France-KLM and Lufthansa submit improved bids for TAP stake

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Summary · why it matters

Portugal's state holding company Parpública announced on the 30th that it has received more favorable binding bids from European aviation giants Air France-KLM and its German rival Lufthansa for a partial stake in state-owned airline TAP. The Portuguese government is expected to decide on the winning bidder by mid-October. Air France-KLM and Lufthansa submitted their first binding bids for a 44.9% stake in TAP in July, and were asked earlier this month to improve their bidding terms. A separate 5% stake is reserved for employees, and the winning bidder will have the right of first refusal over shares that employees decline to acquire. Parpública has not disclosed details of the bids, and will now evaluate the proposals and prepare a report for the government. Portugal's Minister of Infrastructure and Housing, Pinto Luz, said the winning bidder will be selected by mid-October and will become TAP's strategic partner.

Impact on assets 2

Industrials▲
Air France-KLM SA
AF
▲ PositiveCapitalrelevance

Air France-KLM submitted an improved binding bid for a 44.9% stake in TAP, advancing its M&A effort to become TAP's strategic partner.

Deutsche Lufthansa AG
LHA
▲ PositiveCapitalrelevance

Lufthansa submitted an improved binding bid for a 44.9% stake in TAP, advancing its M&A effort to become TAP's strategic partner.

Off-coverage companies 2

TAP Air Portugali
Private± MixedCapitalrelevance

TAP is the target of improved binding bids from Air France-KLM and Lufthansa for a 44.9% stake, with the winner to become its strategic partner.

Parpúblicai
Private± Mixedrelevance

Parpública received the improved binding bids and will evaluate them and prepare a report for the government, with no directional impact stated.