Following Government’s approval of the highest price bid of M/s Talace Pvt Ltd for strategic disinvestment of Air India, the Letter of Intent was issued to the winning bidder on October 11, 2021
The Air India strategic disinvestment transaction has been completed today with Government receiving a consideration of Rs 2,700 crore from the Strategic Partner (M/s Talace Pvt Ltd, a wholly owned subsidiary of M/s Tata Sons Pvt Ltd), retaining debt of Rs 15,300 crore in Air India and AIXL and transferring shares of Air India (100% shares of Air India and its subsidiary AIXL and 50% shares of AISATS) to the Strategic Partner.
It is pertinent to mention that following Government’s approval of the highest price bid of M/s Talace Pvt Ltd for strategic disinvestment of Air India, the Letter of Intent was issued to the winning bidder on October 11, 2021. The Share Purchase Agreement (SPA) was signed on October 25, 2021. Thereafter, Strategic Partner (M/s Talace Pvt Ltd), Air India and the Government worked towards satisfying a set of conditions precedent defined in the SPA including approvals from anti-trust bodies, regulators, lenders, third parties, etc. These conditions have since been met to mutual satisfaction.
The Tata Group has got a fleet of 117 wide-body and narrow-body aircraft, and 24 narrow-body aircraft of Air India Express. Besides, it will get control of 4,400 domestic and 1,800 international landing, and parking slots at domestic airports. Air India has now got three airlines in its kitty, with majority share in Air India and a joint venture with Singapore Airlines for another full-service carrier Vistara. The Tata Group also has a 51 per cent stake in Air Asia India
The Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance announcing the development said that 100 per cent shares of Air India were now transferred to Talace, a wholly-owned subsidiary of the Tata Group. With this, Talace got full management control as the new board of Air India, led by the strategic partner took charge of the airline. The debtridden carrier has received INR 1.10 lakh crore by way of cash support and loan guarantees by the government to keep it afloat.
TATAs had on October 8, 2021 won the bid to acquire the national carrier with the winning bid of INR 18,000 crore, of which INR 15,300 crore were for Air India’s existing debt and INR 2,700 crore to be paid as cash to the government.
On October 11, 2021, a Letter of Intent (LoI) was issued to the Tata Group confirming the government’s willingness to sell its 100 per cent stake in the airline. On October 25, the Centre signed the share purchase agreement for the deal.
The Tata Group has got a fleet of 117 wide-body and narrow-body aircraft, and 24 narrow-body aircraft of Air India Express. Besides, it will get control of 4,400 domestic and 1,800 international landing, and parking slots at domestic airports. Air India has now got three airlines in its kitty, with majority share in Air India and a joint venture with Singapore Airlines for another full-service carrier Vistara. The Tata Group also has a 51 per cent stake in Air Asia India.
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