Days after Tata Sons emerged as the successful bidder to acquire national carrier Air India, the government on Monday inked a share purchase agreement with the debt-ridden company to sell it for Rs 18,000 crore.
Earlier, the government had accepted a proposal by Tales Pvt Ltd, a part of the group’s holding company, to pay Rs 2,700 crore in cash and take over Rs 15,300 crore of the airline’s debt.
Subsequently, a Letter of Intent (LOI) was issued to the Tata group on 11 October, thus officially initiating the process of selling the government’s 100 per cent stake in Air India.
Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), tweeted, “Government today signed Share Purchase Agreement with Tata Sons for strategic disinvestment of Air India.”
Air India Director Finance Vinod Hejmadi, Civil Aviation Ministry’s Joint Secretary Satyendra Mishra and Tata Group’s Supraprakash Mukhopadhyay signed the Share Purchase Agreement (SPA).
The next phase involves getting regulatory approval from the Competition Commission of India by Tata Sons before the actual handover of the airline takes place by the end of December.