Friday, June 5, 2015

Candidates for TAP offer more money and reinforce plan … – publico

                 


                         
                     


                         
                     


                         

                 

 
                         

It was a few minutes to 17h, when David Neeleman, owner of Azul Brazilian, and Germán Efromovich, which controls the South American group Avianca, delivered new offers by TAP. Both bring improvements, but only the first level introduces changes to the strategic plan. But the Colombian-Brazilian businessman upped the ante in money offers for the shares and the capitalization of the company.


                     


                         The details of the final proposals are not yet known, but it is already certain that Parpública, the holding company of the state that holds the shares of TAP, and the company management will be called upon to rule in the coming days on its content. It will be based on this assessment that the executive will make the final decision: to sell TAP and to whom. But there is another keystone, the opinion of society Freshfileds lawyers about whether consortia comply with the rules of the European Union.

The Government confirmed that the new proposals on Friday, after a first version that had been delivered on 15 May, contain changes to the strategic level. And the PUBLIC found, this change only arises in offering David Neeleman, which competes with TAP in partnership with the Portuguese businessman Humberto Pedrosa, owner of Barraqueiro.

On Friday, the American-Brazilian businessman first spoke publicly to the Portuguese press, ensuring that presented “an investment commitment and growth” for the company and confirming that this implies buy 53 new aircraft. Contacted by PUBLIC, an official source of the consortium refused to comment on the proposal.

Since the side of Germán Efromovich, the PUBLIC know that there are improvements from a financial point of view, both with regard to the price offered by as actions with regard to the capitalization of the company value. It is recalled that the businessman had initially offered up to EUR 35 million for 100% of TAP, but this was the maximum, and depended on certain conditions, including the state’s ability to recover 120 million euros in revenues retained in Venezuela and in Angola.

Avianca’s Owner, Efromovich have left now drop some of these requirements, as the government intended. At the same time, strengthened the capital value of the TAP, which the original proposal was EUR 250 million (which added 100 million in cash for the delivery of 12 new aircraft in the short term and also the renewal of the fleet Portugalia). Official source of Efromovich consortium also made Friday a short statement in which he said he presented “an improved proposal on privatization of TAP, which meets the objective of modernization and development of the airline, as a reference company” .

The Government is satisfied with the fact that the two offers were improved after week and a half of negotiations with the candidate. On Friday, Secretary of State for Transport, Sérgio Monteiro, has underlined the fact that the process is being “competitive”, contrary to what happened in 2012 when there was only one proposal (the Efromovich, which would . be rejected)

Restructuring continues on the table
For now, the schedule remains: the aim is to take a decision on the sale as early as next week in the Council of Ministers on 11 June. And so, Parpública and TAP will have to speed up the assessment that will make the two proposals and the executive will have to have on hand also the opinion of Freshfields and also the preliminary report of the committee appointed to monitor the privatization of the air carrier.

But the brief statement on Friday, the government again did not take for granted the sale of the company. The theme this time was the restructuring plan that TAP should have presented to the public last week. Sergio Monteiro explained that the presentation of the plan was postponed, because “if [the privatization] is not successful,” the company will have to go to “a much deeper restructuring”, referring to the fact that TAP require state aid which must be approved by the European Commission through cost reduction commitments.

The plan that the company’s management has prepared, as required by the Government and in response to damage caused by the strike of pilots, was never It is completely closed, as the executive did not agree with some of the planned measures, including suspension for one year from delivery of the A350 and the adjustments to the personal level.


                     
 
                     
                 

                     

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