Lufthansa Group and the Portuguese government have signed the agreement for the German airline group to acquire an initial 44.9% stake in TAP Air Portugal (TAP) for €1.025 billion, marking a major milestone in the airline’s privatisation.
The agreement was signed at Lisbon’s Humberto Delgado Airport. Completion of the transaction remains subject to regulatory approval, particularly from the European Commission.
The investment will be financed entirely from Lufthansa Group’s available liquidity. Through the potential acquisition of shares initially offered to TAP employees, Lufthansa’s stake could rise to 49.9%. Including a so-called ticking fee, the total purchase price could reach up to €1.2 billion.
Lufthansa Group said it welcomed the prospect of a full privatisation of TAP. While a minority stake would already allow it to realise most of the synergies estimated at up to €450 million, a majority stake would offer further opportunities to accelerate TAP’s growth, strengthen its competitiveness and unlock additional potential across the airline group.
The group said its experience from previous acquisitions showed that majority ownership could create further benefits for TAP, Portugal and Lufthansa Group.
The transaction will be completed once all necessary regulatory approvals have been secured.
