After receiving a consideration of Rs 2,700 crore from the 'Strategic Partner' — Talace, a wholly owned subsidiary of Tata Sons — Air India's strategic disinvestment was completed.
Talace would hold a debt of Rs 15,300 crore in addition to the upfront payment.The deal involved three companies: Air India, Air India Express, and AI SATS, to name a few.
"The strategic disinvestment transaction of Air India was completed today with the transfer of 100% of Air India's shares and management control to M/s Talace Pvt Ltd. Air India has a new board of directors, chaired by the Strategic Partner "Secretary, Department of Investment and Public Asset Management, Tuhin Kanta Pandey, tweeted (DIPAM).
New board was formed at Air India's headquarters, 'Airlines House,' included executives from the Tata Group. | Wikimedia Common
N. Chandrasekaran, Chairman of Tata Sons, met with Prime Minister Narendra Modi in Delhi on Thursday ahead of the ceremonial transfer of Air India.Following that, a new board was formed at Air India's headquarters, 'Airlines House,' which included executives from the Tata Group.
"We are delighted to welcome Air India back to the Tata Group and are dedicated to transforming it into a world-class airline," Chandrasekaran added.
"I extend a hearty welcome to all Air India personnel to our Group, and I look forward to working with you." Talace's acquisition of Air India, Air India Express, and Air India SATS Airport Services was authorised by India's Competition Commission last month.
Talace would own 100% of the equity share capital of Air India and Air India Express, as well as 50% of the equity share capital of Air India SATS Airport Services.
Air India SATS Airport Services is in the business of providing ground handling and cargo handling services at the airports of Delhi, Bengaluru, Hyderabad, Mangaluru, and Thiruvananthapuram.
Under the divestiture process, Tata Sons' subsidiary Talace emerged as the top bidder for the national carrier.
It had given an enterprise value of Rs 18,000 crore for the Centre's 100 percent equity stake in Air India, as well as Air India Express and AISATS.
The Centre, on its part, has set a reserve price of Rs 12,906 crore.
(IANS/PR)
(keywords: Tata Sons, Air India, airports Delhi, Bengaluru, Hyderabad, Mangaluru, and Thiruvananthapuram)