New Delhi: It is official. The Tata Group has taken over Air India on Thursday (January 27), the Indian government announced.
The Air India strategic disinvestment transaction has been completed today (January 27) 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, the Ministry of Finance said.
#FlyAI : Air India Limited, Air India Express & AISATS (AI stake) have become part of the Tata Group today.
Senior Officials of @TataCompanies , @SecyDIPAM and @MoCA_GoI met at Airlines House New Delhi. pic.twitter.com/HA4aEkVwWX
— Air India (@airindiain) January 27, 2022
“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,” it added.
Shri N Chandrasekaran, the Chairman of Tata Sons called on PM @narendramodi. @TataCompanies pic.twitter.com/7yP8is5ehw
— PMO India (@PMOIndia) January 27, 2022
Further, the ministry stated, “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.”
Later, in a press release, the Tata Group announced the completion of the transaction for purchase of Air India from the Government of India.
“The Tata Group takes over management and control of the airline, starting today (January 27),” Tata Group said.
#FlyAI : Press Release : Tata Group Onboards Air India. pic.twitter.com/EO83xfJhZM
— Air India (@airindiain) January 27, 2022
The transaction covers three entities – Air India, Air India Express and AI SATS.
Air India is India’s flag carrier. Air India Express is a low-cost carrier. AI SATS provides a comprehensive suite of ground handling and cargo handling services.
On this occasion, Mr. N. Chandrasekaran, Chairman, Tata Sons Pvt Ltd, said, “We are excited to have Air India back in the Tata Group and are committed to making this a world-class airline. I warmly welcome all the employees of Air India, to our Group, and look forward to working together.”
Your arrival was much awaited, @airindiain. #AirIndiaOnBoard #ThisIsTata pic.twitter.com/OVJiI1eohU
— Tata Group (@TataCompanies) January 27, 2022
