LISBON, Oct. 14 (Xinhua) -- Portugal's government on Wednesday selected Lufthansa Group as the winner of the partial privatization of national carrier TAP Air Portugal, in a deal valuing the airline at 2.55 billion euros (2.83 billion U.S. dollars) in total.
Prime Minister Luis Montenegro announced the decision following a cabinet meeting, saying Lufthansa's financial proposal was 16 percent higher than the competing bid from Air France-KLM and carried a lower degree of uncertainty.
"This is the best choice for the future of the company and the one that best protects the national interest," Montenegro said.
The transaction covers 49.9 percent of TAP's capital, of which 44.9 percent will go to Lufthansa and 5 percent is reserved for employees, with the Portuguese state retaining majority ownership.
The prime minister said the deal guarantees the growth of TAP's fleet, passenger numbers, destinations, routes, investment and employment.
The decision will be followed by a final negotiation phase and the required regulatory approvals before the transaction is completed. ■