CCI approves acquisition of shareholding in Air India by Tata Sons
Along with the acquisition of shareholding in Air India, the fair trade regulator also approved stake acquisition by Talace in Air India Express and Air India SATS Airport Services.
- Dec 20, 2021,
- Updated Dec 20, 2021 6:42 PM IST
The Competition Commission of India (CCI) on Monday approved acquisition of shareholding in Air India by Talace Private Limited, a wholly-owned subsidiary of Tata Sons.
Along with the acquisition of shares in Air India, the fair trade regulator also approved stake acquisition by Talace in Air India Express and Air India SATS Airport Services. “Commission approves acquisition of shareholding in Air India, Air India Express & Air India SATS Airport Services by Talace,” it said in a tweet.
Earlier on October 8, the government had announced that Talace Private Limited had won the bid to acquire the debt-laden airline. Tata had outbid a consortium led by SpiceJet promoter Ajay Singh by offering Rs 18,000 crore. Later, on October 25, the government signed the share purchase agreement with Tata Sons for the divestment of Air India.
“The proposed combination envisages acquisition of 100 per cent equity share capital of Air India Limited (Air India) and Air India Express Limited, and 50 per cent equity share capital of Air India SATS Airport Services Private Limited by Talace Private Limited (Talace),” the CCI said in a release.
Air India, along with Air India Express, is primarily engaged in the business of providing domestic scheduled air passenger transport service, international scheduled air passenger transport service, and air cargo transport service.
Air India SATS Airport Services is engaged in the business of providing ground handling services at Delhi, Bengaluru, Hyderabad, Mangalore and Thiruvananthapuram airports, as well as cargo handling services at Bengaluru airport. Earlier this month, Civil Aviation Minister Jyotiraditya Scindia had said that the transfer of Air India to Tata Sons will be completed in the next 1 to 1.5 months.
As per the share purchase agreement, Rs 46,262 crore debt of the state-owned airline will be transferred to Air India Assets Holding Limited (AIAHL), while 15 per cent of the total debt of Rs 61,562 crore will be retained by Tatas. The government will get around Rs 2,700 crore cash from Tatas, and they will take over Rs 15,300 crore debt.
Also Read: World Economic Forum in Davos deferred amid Omicron surge
Also Read: Air India employees will continue to get gratuity, PF benefits after divestment
The Competition Commission of India (CCI) on Monday approved acquisition of shareholding in Air India by Talace Private Limited, a wholly-owned subsidiary of Tata Sons.
Along with the acquisition of shares in Air India, the fair trade regulator also approved stake acquisition by Talace in Air India Express and Air India SATS Airport Services. “Commission approves acquisition of shareholding in Air India, Air India Express & Air India SATS Airport Services by Talace,” it said in a tweet.
Earlier on October 8, the government had announced that Talace Private Limited had won the bid to acquire the debt-laden airline. Tata had outbid a consortium led by SpiceJet promoter Ajay Singh by offering Rs 18,000 crore. Later, on October 25, the government signed the share purchase agreement with Tata Sons for the divestment of Air India.
“The proposed combination envisages acquisition of 100 per cent equity share capital of Air India Limited (Air India) and Air India Express Limited, and 50 per cent equity share capital of Air India SATS Airport Services Private Limited by Talace Private Limited (Talace),” the CCI said in a release.
Air India, along with Air India Express, is primarily engaged in the business of providing domestic scheduled air passenger transport service, international scheduled air passenger transport service, and air cargo transport service.
Air India SATS Airport Services is engaged in the business of providing ground handling services at Delhi, Bengaluru, Hyderabad, Mangalore and Thiruvananthapuram airports, as well as cargo handling services at Bengaluru airport. Earlier this month, Civil Aviation Minister Jyotiraditya Scindia had said that the transfer of Air India to Tata Sons will be completed in the next 1 to 1.5 months.
As per the share purchase agreement, Rs 46,262 crore debt of the state-owned airline will be transferred to Air India Assets Holding Limited (AIAHL), while 15 per cent of the total debt of Rs 61,562 crore will be retained by Tatas. The government will get around Rs 2,700 crore cash from Tatas, and they will take over Rs 15,300 crore debt.
Also Read: World Economic Forum in Davos deferred amid Omicron surge
Also Read: Air India employees will continue to get gratuity, PF benefits after divestment