The central Government has signed the Share Purchase Agreement (SPA) with Tata Sons for the sale of debt-ridden national carrier, Air India.
Talace Private Ltd, a subsidiary that is completely owned by Tata Sons, has emerged as the successful bidder to buyout centre’s shareholding in Air India.
The Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey wrote on Twitter that the SPA was signed today by central government with Tata Sons for strategic disinvestment of Air India.
Tata Son's subsidiary, Talace had placed a bid to acquire the national carrierfor rupees 18,000 crore, that involved retaining debt of rupees 15,300 crore of Air India, and a cash component of rupees 2,700 crore.
Only two bids were placed to acquire the Air India, with another one by the Chairman of Spicejet, Ajay Singh in his personal capacity.
After signing of the SPA, Conditions Precedent (CP), which would include the terms and conditions--will be completed in about eight weeks, as per the plan shared by the centre.
The central government will prepare financial statement of the Air India on a cut-off date before handing over the airlines to Tata Sons and the transaction would be completed by the end of December, this year.