Govt Signs Share Purchase Agreement With Tatas For Air India Sale

After signing the deal, Conditions Precedent (CP), which includes terms and conditions, will be completed in eight weeks, as per the plan shared by govt

Topics

Tata group | Air India

Nikunj Ohri  |  New Delhi 

Air India

Air India

The Centre has signed the share purchase agreement (SPA) with Tata Sons for the privatisation of national carrier

The wholly-owned subsidiary of Tata Sons, Talace Pvt Ltd, earlier this month had emerged as the successful bidder to buyout government’s shareholding in The share purchase agreement (SPA) with Tata Sons was signed today, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a tweet.

Talace had placed a bid to acquire for Rs 18,000 crore, which involved retaining debt of Rs 15,300 crore of the national carrier, and a cash component of Rs 2,700 crore. Only two bids were placed to acquire the national carrier, with another one by Spicejet Chairman Ajay Singh in his personal capacity.

After signing of the SPA, Conditions Precedent (CP)--that would include terms and conditions--will be completed in about eight weeks, as per the plan shared by the government. The government will prepare financial statement of the national carrier on a cut-off date before handing over the airline to Tata’s. The transaction would be completed by end-December.

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First Published: Mon, October 25 2021. 17:20 IST

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