In a significant development, Salt-to-software conglomerate Tatas have won the bid to acquire debt-laden state-run Air India offering Rs 18,000 crore for acquiring 100 per cent shareholding, a senior government official said on Friday. The Union Government on Friday declared Tata Sons' subsidiary Talace as the highest bidder for national carrier Air India under the divestment process. The Tatas' subsidiary quoted Rs 18,000 crore of enterprise value for Air India, Divestment Secretary Tuhin Kanta Pandey announced. There were only two bidders in the final stage of divestment.
Tata Sons' winning bid of Rs 18,000 crore for Air India higher than reserve price of Rs 12,906 crore set by the government, the official added. The transaction is expected to close by the end of December 2021, Pandey added. Both bidders had quoted above the reserve price, he said further adding the transaction is planned to be closed by December.
Notably, conglomerate Tata Sons was touted to be the front-runner to get hold of the carrier. This marks the return of Air India to the Tatas. "Welcome Back Air India," said Ratan Tata, Tata Sons' chairman emeritus on Twitter after the announcement.
Jyotiraditya Scindia flags off Heli services at Jollygrant Airport in Dehradun
Air India's new owner may announce today, name of this corporate house ahead in the race
