New Delhi, Oct 25 (UNI) The government on Monday signed the Share Purchase Agreement (SPA) with Tata Sons for sellling its entire 100% stake in the national carrier along with its subsidiary Air India Express and 50% stake in ground handling joint venture AISATS.
"Share Purchase Agreement signed today by Government with Tata Sons for strategic disinvestment of Air India," Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) tweeted.
Talace Pvt Ltd, a wholly owned subsidiary of Tata Sons Pvt Ltd, had emerged as a successful bidder for the sale of equity shareholding of the government. It had quoted an enterprise value (EV) of Rs 18,000 crore against government's reserve price of Rs 12,906 crore to acquire the airline.
As per the bidding terms, Tatas would retain Rs 15,300 crore of Air India's debt and pay Rs 2,700 crore cash to the government.
The government had earlier issued the Letter of Intent (LoI) to Tata Sons. The transaction is expected to be completed by December 2021.
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