Tata Sons wins bid to acquire national carrier Air India

Tata Sons won the bid to acquire Indian carrier Air India with a bid of Rs 18,000 crore, announced the Department of Investment and Public Asset Management on Friday. The transaction to re-acquire the airline more than half a century after Tata Group ceded control to the Centre, is expected to be closed by December 2021. 

“Talace Pvt Ltd of Tata Sons is the winning bidder at Rs 18,000 crores. The transaction is expected to close by the end of December 2021,” said Tuhin Kant Pandey in a press conference.

Also Read: Tata Motors market cap crosses Rs 1.21 lakh cr, stock hits new 52-week high

The final bid to acquire one of India’s biggest Airlines was filed by the conglomerate on September 15 after which business critiques believed it to be the frontrunner to purchase the airline.

Apart from a 100% stake in Air India and its low-cost arm, Air India Express, Tata’s winning bid also includes a 50% holding in ground-handling company Air India SATS Airport Services Private Limited (AISATS).

Soon after the announcement, Tata Group’s CEO Ratan Tata shared a satatement on Twitter.

The runner-up company was SpiceJet promoter Ajay Singh, who had also submitted a bid for the airline.

The announcement comes just a few days after several media reports stating the finalisation of Indian carrier Air India’s acquisition by Tata Sons were called incorrect by the Centre.

“Media will be informed of the Government decision as and when it is taken: Secretary, Department of Investment and Public Asset Management,” the Secretary, Department of Investment and Public Asset Management, clarified at the time.

The government last week finalised the minimum reserve price for the airline. The minimum reserve price for the national carrier is based on future cash flow projection, brand value and slots in foreign airports.  

The process to sell away Indian carrier Air India, which was founded by Tata Group under JRD Tata, began in July 2017. The Centre received 7 expressions of interest by December 2020, the Finance Ministry’s Department of Investment and Public Asset Management (DIPAM) announced on Friday.