Govt inks share purchase pact with Tatas
Rs18,000-cr Air India sale: Industry conglomerate needs to take several clearances including one from CCI before the actual handover of the airline by December-end
image for illustrative purpose
New Delhi: The government on Monday signed the share purchase agreement with Tata Sons for the sale of national carrier Air India for Rs 18,000 crore. Earlier this month, the government had accepted an offer by Talace Pvt Ltd, a unit of the holding company of the salt-to-software conglomerate, to pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline's debt.
Following that, on October 11 a Letter of Intenet (LoI) was issued to the Tata Group confirming the government's willingness to sell its 100 per cent stake in the airline. "Share Purchase Agreement signed today by Government with Tata Sons for strategic disinvestment of Air India," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.
Air India Director - Finance Vinod Hejmadi, Civil Aviation Ministry Joint Secretary Satyendra Mishra and Supraprakash Mukhopadhyay from the Tata Group signed the share purchase agreement (SPA). Now, various regulatory clearances, including from the Competition Commission of India (CCI), would have to be taken by Tata Sons before the actual handover of the airline takes place by December-end.
