10-Dec-2012 3:19 PM

Synergy submits EUR1.5bn final bid for TAP Portugal; 15% lower than prior non-binding proposal

Synergy Group reportedly submitted its EUR1.5 billion final bid for 95% of TAP Portugal (EFE/Jornal de Negocios/Dinheiro Vivo/Bloomberg/Agenzia ANSA 07-Dec-2012). State holding company Parpública now has five days to review the proposal, which is then expected to reach Portugal's Council of Ministers for final approval on 20-Dec-2012. The bid is reportedly 15% less than the non-binding proposal Synergy had earlier submitted, and reflects Synergy's assumption of TAP's EUR1.2 billion debt load and a EUR300 million capital injection. If the bid is accepted, that state would reportedly only receive EUR20 million "at best" (Jornal de Negocios, 07-Dec-2012). Synergy Owner German Efromovich said, "The most important thing for TAP and the Portuguese state is to have comfort that whoever is entering [the company] is willing to invest."