Tata Sons, government sign share purchase agreement for Rs 18,000 crore Air India deal
A LoI was issued to the Tata Group confirming the willingness of the government to sell its 100% stake in the government, following the offer
The government on Monday signed a share purchase agreement with Tata Sons for sale of national carrier Air India for Rs 18,000 crore. Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey in a tweet said that the share purchase agreement was signed by the government with Tata Sons for strategic disinvestment of Air India.
His tweet read: “Share Purchase Agreement signed today by Government with Tata Sons for strategic disinvestment of Air India.”
Share Purchase Agreement signed today by Government with Tata Sons for strategic disinvestment of Air India. pic.twitter.com/DRjKODxGbM
— Secretary, DIPAM (@SecyDIPAM) October 25, 2021
The deal comprises the sale of Air India Express and ground handling arm AISATS. Tatas beat the Rs 15,100 crore offer by a consortium led by SpiceJet promoter Ajay Singh and Rs 12,906 crore as reserve price set by the government for the sale of its 100% stake in the loss making carrier.
Air India will be the third airline brand in the Tatas’ stable. It already holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd. This is the first privatisation since 2003-04.
The government had accepted an offer by Talace Pvt Ltd, which is a unit of the holding company of the salt-to-software conglomerate to pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline’s debt, earlier this month.
A Letter of Intent (LoI) was issued to the Tata Group confirming the willingness of the government to sell its 100% stake in the government, following the offer.
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