The authorities on Monday signed a share buy settlement with Tata Sons on the market of nationwide service Air India for Rs 18,000 crore.
Earlier this month, the federal government had accepted a suggestion by Talace Pvt Ltd, a unit of the holding firm of the salt-to-software conglomerate, to pay Rs 2,700 crore money and take over Rs 15,300 crore of the airline’s debt.
Following that, on October 11 a Letter of Intent (LoI) was issued to the Tata Group confirming the federal government’s willingness to promote its 100 per cent stake within the airline.
“Share Purchase Agreement signed today by Government with Tata Sons for strategic disinvestment of Air India,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.
Share Purchase Agreement signed right this moment by Government with Tata Sons for strategic disinvestment of Air India. pic.twitter.com/DRjKODxGbM
— Secretary, DIPAM (@SecyDIPAM) October 25, 2021
The deal additionally contains the sale of Air India Express and floor dealing with arm AISATS.
Tatas beat the Rs 15,100-crore supply by a consortium led by SpiceJet promoter Ajay Singh and the reserve value of Rs 12,906 crore set by the federal government for the sale of its 100 per cent stake within the loss-making service.
While this would be the first privatisation since 2003-04, Air India would be the third airline model within the Tatas’ steady — it holds a majority curiosity in AirAsia India and Vistara, a three way partnership with Singapore Airlines Ltd.
