Tata Group takes over Air India
Tata Group on Thursday took over the ownership of national carrier Air India.
''The strategic disinvestment transaction of Air India successfully concluded today with transfer of 100 percent shares of Air India to M/s palace Pvt Ltd along with management control,'' DIPAM Secretary Tuhin Kanta Pandey said in a tweet.
A new board, led by the strategic partner, takes charge of Air India, he added.
In October last year, Tata Group announced the winning bidder for Air India with a bid amount of Rs 18,000 crore. Tatas would pay Rs 2,700 crore cash and takeover Rs 15,300 crore of the airline's debt.
''The Air India strategic disinvestment transaction has been completed today with Government receiving a consideration of Rs 2,700 crore from the Strategic Partner (M/s Talace Pvt Ltd, a wholly-owned subsidiary of M/s Tata Sons Pvt Ltd), retaining debt of Rs 15,300 crore in Air India and AIXL and transferring shares of Air India (100% percent shares of Air India and its subsidiary AIXL and 50 percent shares of AISATS) to the Strategic Partner,'' the finance ministry said in a statement.
Tatas beat the Rs 15,100-crore offer by a consortium led by SpiceJet promoter Ajay Singh and the reserve price of Rs 12,906 crore set by the government for the sale of its 100 percent stake in the loss-making carrier.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)