LISBON—The Portuguese government has received three
offers for national carrier TAP Air Portugal, including from the
founder of Brazil's third-biggest airline and a consortium headed
by Portuguese businessman Miguel Pais do Amaral.
With the offers in hand, the government hopes it will finally be
able to privatize the loss-making airline it says is in dire need
for a capital injection. Portugal tried to sell TAP in 2012, but it
shelved the plan after the only prospective buyer—Latin
American tycoon German Efromovich, owner of AviancaTaca Holding
SA—didn't meet financial conditions set for a deal.
The Portuguese government is now offering up to 66% of the
company—61% to investors and the rest to its
employees.
Secretary of Transport Sergio Monteiro, who refused to give the
name of the bidders or details of the offers, said the government
will now evaluate them.
In 2012, Mr. Efromovich, through Aviaca's controlling company
Synergy Group Corp., offered €35 million ($40 million) for
95% of the airline, plus a capital injection of €316
million and the assumption of about €1.1 billion in debt
held by TAP.
Mr. Pais do Amaral last year told a Portuguese newspaper he
would consider an initial public offering of the airline in the
next few years if he bought TAP.
Brazilian-American businessman David Neeleman, the founder of
Brazil's Azul as well as the U.S.'s JetBlue, told The Wall Street
Journal in an interview that he bid on TAP. If he buys the carrier,
it will be kept separate from Azul for legal reasons. His offer was
made through a personal business holding called DGN, which has
backing from some of Azul's investors and investment funds.
"I feel we have made a very good offer," Mr. Neeleman said,
adding he is willing to invest heavily in TAP. He declined to say
how much he offered.
Azul flies to more than 100 destinations, including in Brazil
and the U.S. TAP operates flights to 82 destinations. Its extensive
routes linking Europe to Brazil make it an attractive property
particularly for Azul.
Nonetheless, they face risks buying TAP.
The company, which includes the airline and a maintenance unit
in Brazil, reported a €85.1 million loss for 2014, higher
than the €5.9 million loss in the previous year. Strikes
and leasing costs hurt operations. It reported €1.06
billion in debt.
This month, the company faced a 10-day strike from pilots who
have balked at terms of the privatization. For instance, they want
more than 5% of the company to be set aside for workers. While many
pilots didn't join the movement, the airline still lost about
€35 million. The pilot's union said more strikes could
take place.
The sale has also faced opposition from politicians and
opinion-makers in Portugal who say TAP is a strategic company that
should remain state-owned.
Antonio Costa, leader of the main opposition Socialist Party,
recently said the state should retain the majority capital in the
company. Portuguese general elections are scheduled for later this
year, and the Socialists are heading some opinion polls against the
ruling coalition.
Write to Patricia Kowsmann at patricia.kowsmann@wsj.com and
Luciana Magalhaes at Luciana.Magalhaes@dowjones.com
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