The government on Monday issued a letter of intent (LoI) confirming the sale of its 100 per cent stake in loss-making Air India to the Tata group for Rs 18,000 crore, a senior official said.
Last week, the government accepted a proposal by Salt-to-Software group’s holding company Tales Pvt Ltd for Rs 2,700 crore in cash and Rs 15,300 crore of the airline’s debt.
After that, an LOI has now been issued to Tata confirming the government’s willingness to sell its 100 per cent stake in the airline.
Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) said, “Letter of intent issued today.
Tata will now have to accept the LOI, after which the Share Purchase Agreement (SPA) will be signed. The pre-transactional conditions will need to be satisfied by Tata before actually handling the operations.
“Generally within 14 days of the acceptance of the LOI, the SPA is signed. We expect the SPA to be signed fairly expeditiously.”
The secretary said the target is to complete the deal by the end of December. After the signing of the SPA, regulatory approvals have to come after which the handover process begins.
Mr. Pandey said the deal is targeted to be completed by the end of December. After the signing of the SPA, regulatory approvals have to come after which the handover process begins.