India Finance News

CCI approves Tata Sons’ share acquisition in Air India – Times of India

NEW DELHI: The Competition Commission of India (CCI) on Monday approved acquisition of shareholding in Air India by Talace Private Limited — a wholly-owned subsidiary of Tata Sons.
The proposed combination envisages acquisition of 100 per cent equity share capital of Air India Limited and Air India Express Limited (AIXL), and 50 per cent equity share capital of Air India SATS Airport Services Private Limited (AISATS) by Talace Private Limited (Talace), an official statement from CCI said.
Air India is wholly owned by the government of India.
However, after much speculations, the Tata Group bought the ailing carrier.
In October, the government signed a share purchase agreement with Tata Sons for the sale of Air India, along with low-cost carrier Air India Express and ground handling arm AISATS, for Rs 18,000 crore.
The amount includes payment of Rs 2,700 crore in cash and takeover of Rs 15,300 crore of the carrier’s debt.
As of August 31, Air India had a total debt of Rs 61,562 crore. Of the total amount, Talace will take over Rs 15,300 crore and the remaining Rs 46,262 crore will be transferred to AIAHL.
As per the Supplementary Demands for Grants, an additional Rs 2,628 crore would be given towards loans and advances to Air India for recoupment of advance from the Contingency Fund of India.
(With inputs from agencies)

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