Wining competitive bid this year for acquiring entire company including wholly-owned subsidiary, Air India Express and 50% stake in Air India SATS, TATA Group now acquires 100% Stake in Air India. With all eyes set on the takeover of famous national carrier Air India the news is coming of the process most probably delayed by a month until January because the completion of procedures taking longer than anticipated, an official stated on Monday as was reported in different newspapers.
Tata group has emerged as the successful bidder of the divestment process of the national carrier Air India. The Tata group’s holding company, Tata Sons through its wholly-owned subsidiary Talace Pvt Ltd submitted a winning bid of Rs 18,000 Crore as the Enterprise Value of Air India. Consequent to the acquisition, the Tatas will own a 100% stake in Air India (a full-service airline operating in domestic and international markets) as also 100% in its subsidiary Air India Express (a low-cost carrier airline that focusses on short-haul international operations especially in the Middle East market) and 50% in the joint venture Air India SATS (airport services on ground and cargo handling). The total permanent and contractual employee strength of Air India & AIXL is 13,500.
At the moment, the Central government had said that it needed to finish the transactions, which included Tatas paying ₹2,700 crore in money, by December finish. As per the situations in SPA, all formalities of handover must be accomplished inside 8 weeks, however this date could be mutually prolonged by the client and vendor and is being achieved on this case. The selected date of handover is yet not mentioned
On October 25, the central government had signed the share buy settlement with Tata Sons for the sale of nationwide service Air India for ₹18,000 crore. Tata’s would pay ₹2,700 crore money and takeover ₹15,300 crore of the airline’s debt. Tatas beat the ₹15,100-crore supply by a consortium led by SpiceJet promoter Ajay Singh and the reserve value of ₹12,906 crore set by the federal government for the sale of its 100% stake within the loss-making service.
As of August 31, Air India had a complete debt of ₹61,562 crore. 75 per cent of this debt or ₹46,262 crore might be transferred to a particular function car AIAHL earlier than handing over the loss-making airline to Tata Group. Tatas is not going to get to retain non-core belongings, such because the Vasant Vihar Housing colony of Air India, Air India Constructing at Nariman Level, Mumbai, and Air India Constructing in New Delhi.
Of the 141 Air India plane that Tatas will get, 42 are leased planes, whereas the remaining 99 are owned. The Tatas will get ownership of iconic brands like Air India, Indian Airlines & the Maharajah.
Whereas this would be the first privatisation since 2003-04, Air India would be the third airline model within the Tatas’ secure – it holds a majority curiosity in AirAsia India and Vistara, a three way partnership with Singapore Airways Ltd. Tata’s acquisition of Air India will give it entry to a fleet of 117 wide-body and narrow-body plane, and Air India Specific Ltd one other 24 narrow-body plane in addition to management of 4,400 home and 1,800 worldwide touchdown, and parking slots at home airports. Air India began struggling losses yearly since its merger with Indian Airways in 2007-08.
About the Tata group
Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising 30 companies across ten verticals. The group operates in more than 100 countries across six continents, with a mission ‘To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on Leadership with Trust’.
Tata Sons is the principal investment holding company and promoter of Tata companies. Sixty-six percent of the equity share capital of Tata Sons is held by philanthropic trusts, which support education, health, livelihood generation, and art and culture.
In 2020-21, the revenue of Tata companies, taken together, was $103 billion (INR 7.7 trillion). These companies collectively employ over 800,000 people.
Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors. There are 29 publicly-listed Tata enterprises with a combined market capitalisation of $242 billion (INR 17.8 trillion) as on March 31, 2021. Companies include Tata Consultancy Services, Tata Motors, Tata Steel, Tata Chemicals, Tata Consumer Products, Titan, Tata Capital, Tata Power, Tata Advanced Systems, Indian Hotels and Tata Communications.
IMAGE: Left Voice
