Air India | Tata Sons
Tata Group officially takes over Air India
New Delhi/IBNS: Tata Sons Chairman N Chandrasekaran on Thursday met Prime Minister Narendra Modi ahead of the official handover of Air India, media reports said.
Shri N Chandrasekaran, the Chairman of Tata Sons called on PM @narendramodi. @TataCompanies pic.twitter.com/7yP8is5ehw
— PMO India (@PMOIndia) January 27, 2022
"We are totally delighted to have Air india back at the Tata group," Tata Sons Chairman N Chandrasekaran said.
The current board is likely to officially resign and the members nominated by the Tata group will take over the board.
"Everything is ready. The cash part of the deal would be transferred to the government tomorrow morning. Then the shares have to be transferred to Tatas. The current Board would meet tomorrow around 4PM and resign. The new board would take over," an official source said, news agency UNI reported Wednesday.
On October 8 last year, the government had announced Talace Pvt Ltd as successful bidder to acquire 100percent equity stake of the government in Air India along with its subsidiary Air India Express and the airline's 50percent stake in ground-handling firm AISATS.
Tata group would transfer Rs 2,700 crore, the cash component of the deal, to the government tomorrow in the first half and take over the debt of Rs 15,300 crore. Talace had quoted an enterprise value of Rs 18,000 to acquire airline.
The terms of the deal required Talace to pay Rs 2,700 crore upfront and taking over the debt of Rs 15,300 crore.
The remaining debt would be taken over by the government.
They would be transferred to Air India Asset Holding Limited (AIAHL), the company created by the government for the purpose.
As on August 31, 2021 Air India had a debt of Rs 61,562 crore.
The transaction does not include non-core assets including land and building of Air India valued at Rs 14,718 crore.
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