Air India privatisation: Tata wins bid to buy Air India for Rs 18,000 cr
Minutes after winning bid for Air India was announced, Tata Sons Chairman Emeritus Ratan Tata thanked the union government for its recent policy of opening up select industries to private sector.
“The Tata Group winning the bid for Air India is a great news. While admittedly it will take considerable effort to rebuild Air India, it will hopefully provide a very strong market opportunity to the Tata Group in the aviation industry,” Ratan Tata said.
Tata Sons will pay Rs 18,000 crore for the Maharaja, outbidding a consortium led by SpiceJet’s Ajay Singh who had bid Rs 15,100 crore. The transaction is expected to be close by end of December this year.
After a mammoth gap of 68 years, debt-laden national carrier Air India returned to its founders Tata Sons, ending a decades-long struggle to the divestment.
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The transaction is expected to close by the end of December 2021, said Tuhin Kant Pandey, DIPAM Secretary. Pandey said the government will get Rs 2,700 crore cash from Tatas for sale of its 100% stake.
The winning bid by Tatas comprises taking over of 15,300 crore debt and paying the rest in cash. All Air India employees will be retained by Tata Sons for a period of one year and following which they will either be retained or offered a VRS.
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