Lufthansa and the Portuguese government have signed a contract formalising the German airline group’s entry into TAP Air Portugal, marking a key milestone in the Portuguese carrier’s privatisation process, according to a Lufthansa statement.
The agreed price for an initial 44.9% stake is €1.025 billion. Up to 5% has initially been reserved for TAP employees, but that portion could also be acquired by Lufthansa, raising the total price to €1.2 billion. The Portuguese state will initially retain a majority stake of just over 50%.
Lufthansa chief executive Carsten Spohr said the agreement signalled a shared future with TAP and the development of the Lufthansa Group. He said the airlines’ networks complement each other and could create growth opportunities in Portugal, South America and Brazil.
Lufthansa was selected by Portugal’s government in mid-October for the minority stake, prevailing over Air France-KLM. The deal remains subject to approval by competition authorities.
Sources: Handelsblatt.