Tata Sons will enhance its stake in finances service AirAsia India (AAI) to 83.67 per cent by buying a further 32.67 per cent for USD 37.66 million from AirAsia Investment Ltd (AAIL), in keeping with a regulatory submitting.
Currently, AAIL, which is a wholly-owned subsidiary of Malaysia-based AirAsia, holds 49 per cent stake within the Bengaluru-based AirAsia India.
In a regulatory submitting to inventory alternate Bursa Malaysia, AirAsia mentioned, “The board of directors of AirAsia wishes to announce that its wholly-owned subsidiary AAIL and Tata Sons Pvt Ltd, India, on December 29, entered into a share purchase agreement.”
It added that the pact is for disposing of AAIL’s fairness curiosity of 32.67 per cent in AirAsia India to Tata Sons “for a total consideration sum of USD 37,660,000 (or MYR 152.58 million)”.
AirAsia India began operations on home routes in June 2014 following the then UPA authorities permitting overseas airways to speculate as much as 49 per cent within the Indian carriers.
“The share of losses over the years has resulted in the carrying value of the investment at the date of transaction to be Nil,” AAIL mentioned within the submitting.
It added that the proposed disposal will, due to this fact, lead to a acquire on disposal of USD 37,660,000 (equal to about 152.58 million Malaysian ringgit) within the fourth quarter of 2020 at each AAIL and consolidated group stage.
The administrators of AirAsia additionally needs to announce that AAIL has additional agreed to waive off unpaid model licence charges payable by AAI to AirAsia Berhad, an organization’s wholly-owned subsidiary, underneath an settlement reached in December final yr, as a result of COVID-19 pandemic, it mentioned.
