With the regulatory approvals and other technical processes with regard to Tata Group’s acquisition of the government’s entire shareholding in Air India and two of its subsidiaries taking more time than anticipated, the transaction will be concluded by next month, a senior official told FE.
The government’s AI transaction was expected to close by end-December. On December 20, the Competition Commission of India approved acquisition of Air India by Tata Group’s Talace Private Limited, taking the first privatisation of a PSU after 17 years closer to completion.
On October 8, Tata Group won the bid for full ownership of the national airline that has long guzzled taxpayers’ money by offering Rs 18,000 crore as enterprise value (EV) consideration.
The proposed combination envisages acquisition of 100% equity share capital of Air India and Air India Express (AIXL) and 50% equity share capital of Air India SATS Airport Services by Talace.Air India will be the third airline brand in the Tatas’ stable — it already owns 84% stake in AirAsia India and 51% in Vistara