New Delhi:Tata Group took over the ownership of national carrier Air India, on Thursday. A new board, led by the strategic partner, has taken charge of the airlines.
Tuhin Kanta Pandey, Secretary of Department of Investment and Public Asset Management (DIPAM) said in tweet that the strategic disinvestment transaction of Air India was successfully concluded today with the transfer of 100 per cent shares of Air India to M/s Talace Pvt Ltd, along with management control.
In October 2021, the Tata Group was announced as the winning bidder for Air India with a bid amount of Rs 18,000 crore. Tata will pay Rs 2,700 crore in cash and will take-over Air India’s debt of Rs 15,300 crore.
A statement from the finance ministry said that the strategic disinvestment transaction of Air India had been completed with Government receiving an amount 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), while retaining the 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 Tata Group beat the Rs 15,100 crore bid by a group led by Spice Jet 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 airline.