"The buyer retains day-to-day management, but the State will have a say in critical decisions such as maintaining the hub [flight distribution platform], the headquarters, or strategic routes," explained Infrastructure Minister Miguel Pinto Luz in the briefing following the Council of Ministers, which approved the decree-law to initiate the sale of up to 49.9% of the airline's capital.

"The Government's intention is to allow the investor to create synergies through a significant role in management and requiring a broad majority, between the State and the partner, for critical decisions," he added.

The sale will be carried out through a direct sale model, reserving up to 5% for the workers, as stipulated by the privatization law. If this percentage is not fully subscribed by the workers, the buyer has preference.

The evaluation of the proposals will be based on three criteria. The first, for pre-qualification, will consider points such as suitability, autonomy, and financial strength. But there is a red line: "We require that it be an airline of significant size, that is, larger than TAP. And, above all, we will take into account its vision for a second phase of privatization," he added.

Among the strategic criteria, he also highlighted the presentation of a long-term industrial and strategic plan, as well as the development of other critical areas such as investment in air operations at Porto and other airports.

Regarding the financial aspect, the immediate price in euros offered for the shares will be valued, but not only that. "We can consider proposals that include other forms of valuation, including performance bonuses (earn-outs), future appreciation of the remaining shares, dividends, and share exchanges," from the future buyer, he explained.

In the document released to the press, following the approval of the decree-law, which does not need to be debated in parliament, the Government also highlights the five main objectives for the privatization of TAP: "recover part of the 3.2 billion invested by the State, maintain the TAP brand with headquarters and effective management in Lisbon, enhance and grow TAP with private investment, strengthen aviation and engineering capabilities, maintain strategic routes, and create synergies with a leading investor to increase competitiveness."

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