The group will be paying Rs18,000 crore (approx. Dh8.82 billion) for the deal.
Tata Sons has emerged as the winning bidder for state-owned Air India, a government spokesperson announced in New Delhi on Friday. The group will be paying Rs18,000 crore (approx. Dh8.82 billion) for the deal.
“Government approves the winning bid of M/s Tata Sons’ SPV (M/s Talace Pvt Ltd) for @airindiain disinvestment at an enterprise value of 18000 crore,” tweeted the Press Information Bureau (PIB). “The bid by the consortium led by Ajay Singh was 15,100 crore – @SecyDIPAM”
According to the government, the transaction does not include non-core assets including land and building, valued at Rs14,718 crore, which are to be transferred to state-owned Air India Assets Holding Ltd (AIAHL).
Tata Sons will retain all the employees and nobody will be retrenched for a year, said the government. “If after a year they are to be removed, they will be offered a VRS (voluntary retirement scheme),” said the secretary of the ministry of civil aviation. “Gratuity and provident fund benefits will be provided.”
The government said that the Air India brand, with eight logos will be handed over to the new bidder and these cannot be transferred for five years. And even after that, they cannot be transferred to any foreign entity.
(Except for the headline, this story has not been edited by WC Times staff and is published from a syndicated feed.)