TAP receives 120 million still no certainty about Chinese capital – RTP

Ana Sanlez – RTP 08 Mar, 2016 17 11 / updated on 08 Mar, 2016 19:05 | Economy

TAP confirmed in a statement that shareholders Atlantic Gateway and Parpública “approved this morning at the General Meeting, the issuance by TAP SGPS SA, of 120M € of convertible bonds in shares of the company “.

 

 The loan will occur in two phases. In the first TAP receives 90 million Blue. The second entry of capital of 30 million, can either be from the state, through Parpública, as again the Blue. The management of the State’s subsidiaries have until June 20 to decide whether to opt for the right to subscribe to this share.

“The conversion of the bonds into shares of TAP SGPS and the provision of guarantees under this issue are conditional expressly approved by ANAC,” the company statement.

 The loan was approved only after authorization from ANAC guaranteed. The Civil Aviation Authority has given the green light to the operation last Friday.
Irregularities? There are “founded indications”

 The regulator has assessed all management decisions made by TAP, following the opinion issued on 19 February, in which the Administrator believes that there “founded nonconformity evidence of corporate control structure and financing presented to TAP, SA and PGA SA (…) in relation to the actual requirement of controls by national European Union Member State. ”

This is because the Community rules prevent airlines are held mainly by non-European investors, and David Neeleman, despite being a minority partner of the Atlantic Gateway, along with Humbero Pedrosa has more economic rights in society due the “special actions”.
Chinese do not come, for now

 The statement TAP also makes reference to the possible entry of Chinese Hainan Airlines (HNA), Blue lenders in this transaction and shareholders, with 23.7 percent of the Brazilian company, the capital of TAP.

“Please note that under the MOU signed between the Government and the Atlantic Gateway on February 6, 2016, whose implementation is in progress, it is anticipated the possibility of the HNA have a minority stake in the capital of the Atlantic Gateway. The resulting new governance structure of the implementation of the MOU will be timely communicated to the ANAC, “reads the note.

In practice the Chinese would be indirect shareholders of TAP, since, as reported by the company, the bonds may be converted into shares.

 

 But the newspaper Expresso advanced early on Tuesday that the HNA could not be a shareholder of TAP, only funding, and it is in that capacity that the group takes part in this operation.

ANAC later clarified the same journal that has not yet taken any decision on the change of the shareholder structure of TAP, which is not to have on the table the direct or indirect entry of the Chinese in the carrier’s capital .

Such a decision will only be evaluated by the civil aviation regulator when an actual conversion of bonds into shares.
“de-privatization” until April

 The state currently controls 39 percent of the capital of TAP, as a result of the company’s sale completed in October by the previous coalition government PSD / CDS.

But the memorandum signed between the government of António Costa and the Atlantic Gateway consortium at the beginning of February provides that the State again control 50 percent of the carrier, passing the Gateway holds 45 percent.

the remaining five percent are available to workers, but are likely to be purchased by Gateway. The memorandum establishes April 30 as the deadline for the contract is concluded.