SATA Holding Receives Six Non-Binding Bids in SATA Handling Privatization
Why It MattersThe sale tests investor appetite for regional ground handling under tight conditions, with 30-month job and headquarters guarantees and service continuity across nine Azores airports shaping who can credibly bid.
SATA Holding has received six non-binding proposals in the privatization of SATA Handling, the ground-handling business serving the Azores. The sale covers 100% of the company's capital. In September the Azorean airline group had received 11 expressions of interest. The proposals will now be analysed and evaluated under the terms set out in the process's tender specifications (Caderno de Encargos).
Among the interested parties previously reported are Belgium's Aviapartner, which operates at more than 75 airports in Europe and Africa and is bidding in consortium with Gestavia; Swissport, the revenue leader in the sector, present at 312 airports in 49 countries; and Britain's Menzies Aviation, the current holder of ground-handling licences at the Lisbon, Porto and Faro airports. Investment funds were also among the 11 interested parties. SATA has not named the selected entities and will do so only after the deadline for binding proposals.
The selected candidates move to due diligence and must submit a binding proposal containing a seven-year strategic plan. The specifications allow an additional negotiation phase with one or more bidders before the final choice. Besides the price offered for the SATA Handling shares, the selection criteria include the quality and feasibility of the strategic plan, the long-term vision for the company, the maintenance and strengthening of its competitive position, and financial capacity and sustainability.
The buyer must guarantee continuity of ground-handling services in the categories for which SATA Handling is licensed at the nine airports and aerodromes of the Azores Autonomous Region. For 30 months there may be no collective dismissals or elimination of jobs, and the headquarters and management of SATA Holding must remain in the Azores for the same period.
The unions SITAVA and SINTAC called a partial strike between 21 October and 3 November to protest the privatization. SATA Holding is also privatizing Azores Airlines, and has invited five entities to submit binding proposals.
