New Delhi: The Air India disinvestment process got completed today with the government officially handing over the management control of the airlines to Talace Private Limited, a subsidiary of the Tata Group’s holding company.
Deal dynamics
- After a bidding process, the government on October 8 last year sold Air India to Talace Pvt Ltd, a subsidiary of Tata Group, for Rs18,000 cr
- As a part of deal, Tata Group has also been handed over Air India Express and 50% stake in ground handling arm Air India SATS
- Tatas had beaten Rs15,100-cr offer by a consortium led by SpiceJet promoter & reserve price of Rs12,906 crore
After taking over the airlines, Tata Sons’ Chairman N Chandrasekaran, who met Prime Minister Narendra Modi earlier in the day, said, “We are delighted to have Air India back at the Tata Group and are committed to making this a world-class carrier.”
The PMO in a tweet along with photograph said, “N Chandrasekaran, the Chairman of Tata Sons called on PM @narendramodi.” Chandrasekaran later also visited the Air India headquarters here.
Announcing the event in one of his Twitter posts, Secretary, Department of Investment and Public Asset Management (DIPAM), Tuhin Kanta Pandey, said, “The strategic disinvestment transaction of Air India successfully concluded today with the transfer of 100% shares of Air India to Talace Pvt Ltd along with management control.”
After a competitive bidding process, the government had on October 8 last year sold Air India to Talace Pvt Ltd, a subsidiary of the Tata Group’s holding company, for Rs 18,000 crore. The Tata Group has also been handed over Air India Express and a 50% stake in ground handling arm Air India SATS. Tatas had beaten 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% stake in the loss-making carrier. Air India will be the third airline brand in the Tata Group’s stable. It holds a majority interest in AirAsia India and Vistara.
Tatas would not get to retain non-core assets such as the Vasant Vihar housing colony of Air India, Air India Building at Nariman Point, Mumbai, and Air India Building in New Delhi. Air India controls over 4,400 domestic and 1,800 international landing and parking slots at domestic airports and 900 slots abroad.