Azores Airlines: SATA with 5 non-binding proposals for privatisation

“ Athe proposals received will now be the subject of analysis and evaluation, in accordance with the terms set out in the Paper of Charges of the Process”, the company said in a statement sent to the agency Lusa one day after the deadline for submitting non-binding proposals.

According to the note, this phase has been completed, “the entities that will be invited to submit binding proposals will be selected and the subsequent steps for the operation will be continued”.

On September 16, the Azorean aviation group reported that it completed the analysis of the documentation in the context of the privatisation process of Azores Airlines and decided to invite six entities to submit non-binding proposals.

The deadline for the submission of non-binding proposals for the privatisation of at least 75% of Azores Airlines was fixed until 21 September.

At the time, the company pointed out that “SATA Holding completed the analysis of the documentation submitted in the context of the privatisation process of Azores Airlines and verified compliance with the participation requirements of six entities in the Cargo Book”.

Following that analysis, “SATA Holding decided to invite the six entities to submit non-binding proposals”.

In addition, it recalled that SATA Holding received eight expressions of interest for the privatisation process and that the documentation submitted was analysed with a view to verifying compliance with the participation requirements set out in the specifications.

The privatisation specifications of SATA International/Azores Airlines proposes the sale of at least 75% of the company and prevents the extinction of jobs and collective redundancies for 30 months.

According to the restructuring plan approved by the European Commission, the specifications set out a “private negotiation” model for the privatisation of the airline, which will have to be completed by the end of the year.

The specifications set out an initial stage for the qualification of interested parties, a second stage for the submission of non-binding proposals and a third stage for binding proposals, also providing for the possibility of a “possible phase of final negotiation”.

Among the selection criteria for the proposals are the value presented for the purchase of the shares, the “commitment to contribute to the strengthening of the company’s economic and financial capacity”, the “absence of legal or economic constraints”, the guarantee of respect for labour commitments and the promotion of “shareholder stability”, through the “implementation of a government model that takes into account the specific nature” of Azores Airlines.

The sale of at least 75% of the company represents a difference from the previous tender, which provided for a minimum sale of 51% and a maximum of 85%, a procedure closed on March 6 without privatisation, after the jury and the administration of SATA considered that the Atlantic Connect Group proposal, the only one admitted, had “acceptable risks”.