Efromovich without “substantial changes” in its proposal – Express

It is with “great concern” that Germán Efromovich see the “complete deterioration” of TAP in recent months. Entrepreneur team source point to Expresso that the proposal “hardly” will be improved. Concerned, says the same source, are beyond the short and medium term debt, about € 100 million in revenues that continue to be held in Venezuela and Angola, the effects of the strike that pilots met in May and which cost € 35 million to the airline, but also the various promotional campaigns to destinations such as Brazil and Africa that TAP has promoted ever since. “We have deepened our ability to sell over the internet which is a sales channel that enables immediate results,” confirms an official source TAP. But reading the team of Efromovich makes these sales is that aim to solve the short-term cash flow problems, but that will have consequences in the future. They count as income now, but it will cost later distinction to the same source.

Another “issue” that is contributing to the “seizure” of Efromovich regard to the contract that TAP has established with respect to ANA Duty Free Shops. The team’s manager is concerned that the airport managing not renew the contract, which is valid until 2020 and that this represents losses for the TAP in the future. Company official sources detailing the turnover of the Duty Free Shops in 2014 was € 180 million, with a benefit for TAP (management fees, dividends and onboard sales) of € 8.85 million.

For these reasons, are not so predictable “substantial changes” in the final offer that Germán Efromovich come due by June 5, the date that the Government set for submission of tenders binding “improved and final” by candidates to the purchase of the Portuguese airline, ended the stage of negotiations provided for in the privatization tender documents. In the race are SAGEF (Synergy Group – Germán Efromovich) and Gateway (DGN, David Neeleman, and HPGB, Humberto Pedrosa, president of Barraqueiro). Contacted, the Neeleman team does not comment on the adjustments that will make your offer.

disponívelpara Banking negotiate debt
Miguel Pais do Amaral, who was excluded from the privatization process, said this week in an interview with “Business Journal” that considers “highly likely” that the state has to assume part of the debt of the Portuguese airline for the company to be sold. Late last year, the bank debt TAP amounted to € 646.7 million, of which € 515.9 million with payment due within one year. And the Express learns from nearby sources of the process, some € 400 million of debt maturing TAP until the new buyer to take possession, that is, before the last quarter of the year. The debt liability will remain in the company, according to the same sources. But soon after the buyer’s choice – decision that the Government intends to take until mid-June – there will be a renegotiation with banks in order to extend debt maturities. In the process, should be the TAP, the state (through Parpública) and the prospective purchaser (even before taking office). From the moment the new owner of TAP is chosen, knowing the investment plan, operational and management capabilities they bring to the company, the banks now will be able to negotiate. Some, indeed, have already expressed their availability to the government.

propostasem discussion
In its proposal on 15 May, Neeleman proposes a capital increase between € 300 million and € 350 million and an investment in the fleet with the purchase of 53 aircraft (which will have to order), especially long-haul. The offer provides for the strengthening of links within Brazil (to feed the transatlantic flights) and more flights from Lisbon to other destinations in the United States, as well as the sharing of 10% of the dividends to workers as it does in the Brazilian Blue or US JetBlue (another low-cost carrier founded by Neeleman).

Efromovich competes for the second time the purchase of TAP. After almost have been 100% of the group in 2012 – was not for lack of guarantees – Germán Efromovich now offers an injection of about € 250 million in “new money” (of which € 150 million to € 180 million to capitalize on immediately) and € 100 million in “kind” – 12 new aircraft that Avianca is already available for TAP operate: six A330 (long course) and six A320 (high school). Still promises fleet renewal Portugália (PGA), and in all plans to add 38 aircraft to the TAP group and to ensure the arrival of the Airbus A350 12 that the company has anticipated receiving from 2017 (ie 50 aircraft in total) . The strategic plan presented are part of the development of relations TAP with Latin and South America and the United States as well as the profitability of the Beja airport as a logistics center group load, with synergies with the port of Sines, turning one a load infrastructure group hub (TAP and Avianca) for Europe. Efromovich still promises the distribution of dividends (from 10% to 20%) by the workers.