Tata Sons wins bid for acquiring Air India at Rs 18,000 crore
Tata Sons has emerged as the top bidder for the takeover of debt-laden state-run airline Air India at Rs 18,000 crore, said Tuhin Kanta Pandey, secretary to the Department of Investment and Public Asset Management (DIPAM) on Friday. Group's chairman emeritus Ratan Tata tweeted a vintage photograph of the company's former chairman JRD Tata stepping down from an Air India flight.
The bid got approved by a group of ministers headed by Home Minister Amit Shah on October 4, said Tuhin Kanta Pandey.
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The transaction would be completed by December 2021, said Tuhin Kanta Pandey. The bid was filed by Tata Sons wholly-owned subsidiary Talace Pvt Ltd. Tata Sons were up against Spicejet promoter Ajay Singh-led consortium, who had bid Rs 15,100 crore. The total debt of Air India as of August 31 stands at Rs 61,562 crore.
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Air India's reserve price was fixed after the bids were called to ensure that the bidders do not get to know about the reserve price prior to their bidding. It ensured utmost confidentiality when it comes to the reserve price.
The government will divest its 100 per cent stake in Air India, Air India Express and 50 per cent stake in ground handling company AISATS.
-PTC News With inputs from ANI
