“We believe that by the summer, we will have completed the process of choosing the new buyer for 49% of TAP. By summer, we will have taken a position,” said Pinto Luz at a lunch for members of the Portuguese Hotel Association (AHP) in Lisbon.

The Infrastructure Minister said that the Government had a different understanding of the operation, since it “ideologically believes” in 100% privatisation.

However, he stressed that he had found common ground and, on the other hand, argued that he had conducted a market assessment that “maximises the value of the company” by privatising 49.9% of it.

“We have the three largest European groups in the running. Once the 90-day deadline for non-binding bids has expired, we will have figures and the opportunity to evaluate and make a decision,” he insisted.

The deadline for submitting non-binding bids is 2 April, following a period of detailed disclosure of the company's information and the signing of confidentiality agreements.

Parpública, the state-owned company responsible for managing the state’s holdings, had until 12 December to prepare a report evaluating the interested parties; the document was delivered before this deadline, according to Pinto Luz.

The third phase of the process includes information gathering and the submission of binding bids within 90 days of the invitation, with the Council of Ministers able to set a shorter deadline.

Once the binding bids have been received, Parpública will again have 30 days to submit a final report, a deadline that may be extended by a reasoned decision of the Council of Ministers.

Based on this document, the best proposal may be selected, or a negotiation phase may be initiated to produce improved final proposals.

Once the selection process is complete, the Council of Ministers will approve the final drafts of the sales contracts, which the buyer must sign within 15 days.

This will be followed by the convening of TAP’s general meeting to approve the necessary resolutions to proceed with the privatisation and to implement the agreed industrial and strategic plan.

The specifications provide for the sale of up to 44.9% of TAP’s capital, with 5% reserved for employees. Any shares that are unsubscribed will be subject to the future buyer’s right of first refusal.