January 27, 2022
2 mins read

It’s official: Tata takes over Air India

The acquisition envisaged 100 per cent equity share capital of Air India and Air India Express, and 50 per cent for that of Air India SATS Airport Services by Talace….reports Asian Lite News

Pic credit Twitter @airindiain

 The Centre on Thursday handed over the management control of national carrier Air India to a subsidiary of Tata Sons.

With this Air India’s strategic disinvestment was complete after the Centre received a consideration of Rs 2,700 crore from the ‘Strategic Partner’ — Talace — which is a wholly owned subsidiary of Tata Sons.

Besides the upfront payment, Talace will retain a debt of Rs 15,300 crore.

Notably, the transaction covered three entities – Air India, Air India Express and AI SATS.

“The strategic disinvestment transaction of Air India successfully concluded today with transfer of 100 per cent shares of Air India to M/s Talace Pvt Ltd along with management control. A new Board, led by the Strategic Partner, takes charge of Air India,” tweeted Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM).

On Thursday, Tata Sons Chairman N. Chandrasekaran called on Prime Minister Narendra Modi in Delhi ahead of the official handover of Air India.

Afterwards, at ‘Airlines House’, the HQ of Air India, a new board was constituted which included Tata Group’s executives.

“We are excited to have Air India back in the Tata Group and are committed to making this a world-class airline,” Chandrasekaran said.

“I warmly welcome all the employees of Air India, to our Group, and look forward to working together.”

Last month, the Competition Commission of India had approved the acquisition of Air India, Air India Express and Air India SATS Airport Services by Talace.

The acquisition envisaged 100 per cent equity share capital of Air India and Air India Express, and 50 per cent for that of Air India SATS Airport Services by Talace.

The airline, along with AIXL, is primarily engaged in the business of providing domestic and international scheduled air passenger transport service, along with air cargo transport service.

Air India SATS Airport Services is engaged in the business of providing ground handling services at Delhi, Bengaluru, Hyderabad, Mangaluru and Thiruvananthapuram airports, and cargo handling services at Bengaluru airport.

Tata Sons’ subsidiary Talace had emerged as the highest bidder for the national carrier under the divestment process.

It had quoted an enterprise value of Rs 18,000 crore for 100 per cent equity shareholding of the Centre in Air India along with that of Air India Express and AISATS.

On its part, the Centre had stipulated a reserve price of Rs 12,906 crore.

ALSO READ: Thomas Mathew to scribble Ratan Tata’s biography

Previous Story

Rahul to begin Punjab campaign by paying obeisance at Golden Temple

Next Story

5 Cong MPs skip Rahul’s poll campaign launch in Punjab

Latest from -Top News

Industry Hails India-UK FTA

£34 billion boost, sweeping tariff cuts and market access mark UK’s most ambitious post-Brexit trade pact; Indian sectors set for exports surge…reports Asian Lite News Business leaders from both India and the

India, UK Sign Landmark FTA

The pact is set to make imported goods like Scotch whisky, gin, luxury cars, cosmetics, and medical devices more affordable for Indian consumers….reports Asian Lite News In a landmark moment for India-UK

Farmers Win Big in India-UK FTA

There is a massive gain for rural India and exporters with zero duty on processed foods compared with up to 70 per cent earlier….reports Asian Lite News The India-UK Free Trade Agreement

Modi-Starmer Meet Ahead of FTA Signing

During the discussions, the two sides will also review the progress of the Comprehensive Strategic Partnership (CSP)…reports Asian Lite News Prime Minister Narendra Modi on Thursday called on Keir Starmer at the

Hindu Temple Vandalised in Melbourne

Confirming the incident, Victoria Police mentioned they are investigating “four linked incidents in Boronia,” including the temple and two restaurants….reports Asian Lite News In a deeply disturbing incident of racial violence, a
Go toTop

Don't Miss

WTO Flags Global Trends Redefining Trade

The report presented strong evidence that trade has played a

People say last goodbye to Kodiyeri Balakrishnan

The sight of Chief Minister Pinarayi Vijayan along with his