Air India flies back to the Tatas as govt hands over airline’s ownership to Tata Sons’ arm

The Tata Group on Thursday took over the ownership of national carrier Air India. 

“The strategic disinvestment transaction of Air India successfully concluded today with transfer of 100 per cent shares of Air India to M/s Talace Pvt Ltd, along with management control,” DIPAM Secretary Tuhin Kanta Pandey said in a tweet on Thursday. 

A new board, led by the strategic partner, took charge of Air India, he added. 

In October last year, the Tata Group had announced the winning bidder for Air India with a bid amount of Rs 18,000 crore. The Tatas would pay Rs 2,700 crore cash and takeover Rs 15,300 crore of the airline’s debt. 

“The Air India strategic disinvestment transaction has been completed today 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 per cent shares of Air India and its subsidiary AIXL and 50 per cent shares of AISATS) to the Strategic Partner,” the Finance Ministry said in a statement. 

The Tatas had beat the Rs 15,100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of Rs 12,906 crore set by the government for the sale of its 100 per cent stake in the loss-making carrier. 

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