The much-anticipated transfer of national carrier Air India back to its founders Tata Sons was officially stamped on Thursday evening (January 27). “Air India has been handed over to Tata Sons,” said Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey, confirming the news.
The strategic disinvestment transaction was completed with Government receiving a consideration of Rs 2,700 crore from the Strategic Partner Talace 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.
In a press statement, the Tata Group announced the completion of the transaction for purchase of Air India from the Government of India. The Air India transaction covers three entities – Air India (the national carrier), Air India Express (low-cost AI subsidiary) and AI SATS (ground handling and cargo handling services company).
Your arrival was much awaited, @airindiain. #AirIndiaOnBoard #ThisIsTata pic.twitter.com/OVJiI1eohU
— Tata Group (@TataCompanies) January 27, 2022
The announcement comes after Tata Sons chairman N Chandrasekaran had reached Air India house for the completion of the official process, in presence of the DIPAM Secretary and the Civil Aviation Secretary Rajiv Bansal. Chairman Chandrasekaran, 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.” A new Board, led by the Strategic Partner, has taken charge of Air India.
In October last year, Air India’s acquisition rights were won by the Tata Group’s SPV Talace Private Limited for Rs 18,000 crore after a competitive bidding process. Following 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 (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.
The national carrier was founded by the group back in 1932. After India’s independence the Tata-owned private airline was one of the company’s nationalized in 1953. After 69 years, the airline is again under the ownership of one of India’s oldest business conglomerates.
Ahead of the Air India handover, Chandrasekaran had met Prime Minister Narendra Modi today. Later, he paid a visit to the Air India headquarters. The PM tweeted a photograph of the meeting from the official Twitter handle.
