Tata Group has also taken over Air India Express and a 50% stake in Air India SATS
The Air India strategic disinvestment transaction has been completed on 27 Jan 2022 with Government receiving a consideration of Rs.2,700 crore from the Strategic Partner, Talace Pvt Ltd, a wholly owned subsidiary of 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.
Tata Group has welcomed back Air India, which was started by the Tata Group in 1932 by JRD Tata. But the airline was nationalised by Prime Minister Jawaharlal Nehru’s Government in 1953.
It is pertinent to mention that following Government’s approval of the highest price bid of Talace Pvt Ltd for strategic disinvestment of Air India, the Letter of Intent was issued to the winning bidder on 11 October 2021, said the Government.
The Share Purchase Agreement (SPA) was signed on 25 October 2021. Thereafter, 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,” said the Government.
The process of Air India disinvestment got completed on 27 Jan 2022 with the government officially handing over the management control of the airlines to Talace.
After a competitive bidding process, the government had on 8 October 2022 sold Air India to Talace for Rs.18,000 crore.
As a part of the deal, the Tata Group has also been handed over Air India Express and a 50% stake in ground handling arm Air India SATS.
Air India is the third airline brand in the Tata Group which holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd.
Air India operates over 4,400 domestic and 1,800 international landing and parking slots at domestic airports as well as 900 slots at international airports.
Talace has taken over 141 aircraft as part of the deal, 42 of which are leased planes and 99 are owned.
Non-core assets such as the Vasant Vihar housing colony of Air India, Air India Building at Nariman Point, Mumbai, and Air India Building in New Delhi, are not part of the deal with Tata Sons. fiinews.com
