Date : 28 Jan 2022
Air India disinvestment process completedTags :
Indian Economy and issues relating to planning, mobilization, of resources, growth, development, and employment
Why in News?
- Air India has been officially handed over to the Tata Sons Limited.
- The Tata Group takes over the management and control of the airline. The transaction cover three entities, Air India, Air India Express and AI SATS.
- The strategic disinvestment transaction of Air India successfully concluded with transfer of 100 per cent shares of Air India to Talace Private Limited along with management control.
- The Air India strategic disinvestment transaction has been completed 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 11 October 2021.
- The Share Purchase Agreement (SPA) was signed on 25 October, 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.
- A new Board, led by the Strategic Partner, took charge of Air India.