Tata Sons will hike its stake in budget carrier AirAsia India (AAI) to 83.67percent by acquiring an additional 32.67percent for USD 37.66 million from AirAsia Investment Ltd (AAIL), according to a regulatory filing. Currently, AAIL, which is a wholly-owned subsidiary of Malaysia-based AirAsia, holds 49 percent stake in the Bengaluru-based AirAsia India.
In a regulatory filing to stock exchange Bursa Malaysia, AirAsia said, "The board of directors of AirAsia wishes to announce that its wholly-owned subsidiary AAIL and Tata Sons Pvt Ltd, India, on December 29, entered into a share purchase agreement." It added that the pact is for disposing of AAIL's equity interest of 32.67percent in AirAsia India to Tata Sons "for a total consideration sum of USD 37,660,000 (or MYR 152.58 million)".
AirAsia India started operations on domestic routes in June 2014 following the then UPA government allowing foreign airlines to invest up to 49percent in the Indian carriers. "The share of losses over the years has resulted in the carrying value of the investment at the date of the transaction to be Nil," AAIL said in the filing.
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