Lufthansa Says ‘Couldn’t Miss’ TAP Deal Has €450 Million Upside
9 Articles
9 Articles
Lufthansa Says ‘Couldn’t Miss’ TAP Deal Has €450 Million Upside
Deutsche Lufthansa AG outlined the benefits of a “couldn’t miss” opportunity to buy a minority stake in Portuguese airline TAP SA, including catching up with European rivals in Latin America and finding as much as €450 million ($505 million) in annual synergies.
German company estimates at 450 million euros the synergies obtained with the minority participation in the TAP. Most of the gains is generated in the Portuguese company and returned via dividends to Lufthansa.
German company says company was opportunity that could not miss and points to 100%
The German AUA mother Lufthansa hopes to get a quick start with the Portuguese airline TAP and relies on a comparatively fast approval by the EU competition guardians. "TAP fits perfectly with us," said Lufthansa CEO Carsten Spohr in an investor call on Thursday. From the very first day, added value will be created. Overall, synergies of around 450 million euros are promised, said Chief Financial Officer Till Streichert.
Following the takeover of the Portuguese airline Tap, Lufthansa CEO Carsten Spohr calculates synergies of almost half a billion euros. Germans also want to decide on the head of the future subsidiary.
German group estimates that the business involving the purchase of 44.9% of TAP generates synergies of 450 million euros, according to a presentation to analysts made this Thursday.
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