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AVH - Avianca Holdings SA News Story

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Last Trade - 08/05/20

Sector
Industrials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £2.53bn
Position in Universe th / 6858

UPDATE 1-Portugal to sell up to 66 pct of airline TAP in relaunched privatisation

Thu 13th November, 2014 4:09pm
(Adds quotes, details, background) 
    By Sergio Goncalves and Daniel Alvarenga 
    LISBON, Nov 13 (Reuters) - Portugal plans to sell its 
controlling stake in flag carrier TAP to one or more large 
investors in a relaunch of the privatisation of the indebted 
airline, the government said on Thursday. 
    Secretary of state for transport Sergio Monteiro said up to 
66 percent of TAP will be sold, with a 61 percent reserved for 
one or several large investors. 
    "The state does not intend to obtain financial gains from 
this privatisation, it wants to guarantee that TAP is adequately 
capitalised," Monteiro told a news briefing. 
    Monteiro added the airline had debts of some 1 billion euros 
($1.3 billion) and the state was banned from injecting fresh 
capital under EU rules. 
    Five percent of the airline's equity will be reserved for 
workers. The government will retain 34 percent and may exercise 
an option to sell that stake two years after the privatisation. 
    Monteiro said there was no timetable yet for the sale. 
    Economy Minister Antonio Pires de Lima has said there were 
various potential buyers interested in TAP. Germany's Lufthansa 
 LHAG.DE  and Spanish group Globalia have said they were 
following developments around the privatisation, while 
Portuguese entrepreneur Miguel Pais do Amaral has also expressed 
interest. 
    In 2012, the government rejected the only valid offer for 
TAP, made by Latin American tycoon German Efromovich, owner of 
AviancaTaca  AVT_p.CN , citing his failure to meet financing 
requirements.  
    "We are now more optimistic and all the information 
collected allows us to face this process with redoubled 
confidence that it will be successful. But we will only know 
when we receive the formal proposals," Monteiro said. 
    The privatisation is part of a sale of state assets required 
as a condition of Portugal's three-year EU/IMF bailout, which 
ended in May. 
    Lisbon has raised around 9.4 billion euros via sell-offs 
since the start of its bailout in 2011, having overshot its 
privatisation target during the rescue programme. 
    In September, the government sold waste management firm EGF 
for 150 million euros to SUMA, a consortium led by construction 
company Mota-Engil  MOTA.LS , and also sold the remaining 31.5 
percent stake in postal firm CTT  CTT.LS , raising 343 million 
euros. 
    TAP is among several privatisations yet to be completed, a 
list also including some public transport companies and 
concessions.     
(1 US dollar = 0.8012 euro) 
 
 (Writing by Andrei Khalip; Editing by David Holmes) 
 ((axel.bugge@thomsonreuters.com; +351-213-509-201; Reuters 
Messaging: axel.bugge.thomsonreuters.com@reuters.net)) 
 
Keywords: PORTUGAL TAP/
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