New Delhi (27.01.2022): The government on Thursday officially handed over Air India to the Tata group. The Tata Group now takes full control of the iconic 'Maharaja'.
The strategic disinvestment transaction of Air India successfully concluded today with the transfer of 100 per cent shares of Air India to Talace Pvt Ltd along with management control. A new Board, led by the Strategic Partner, takes charge of Air India, Secretary, DIPAM stated.
The Air India strategic disinvestment transaction has been completed today with the Government receiving a consideration of Rs 2,700 crore from the Strategic Partner M/s 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 per cent shares of Air India and its subsidiary AIXL and 50 per cent shares of AISATS) to the Strategic Partner.
It is pertinent to mention that following the 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. The Share Purchase Agreement (SPA) was signed on 25 October, 2021. Thereafter, Strategic Partner 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.