Tata Sons acquires Air India by making highest bid

Tata Sons acquires Air India by making highest bid
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Tata Sons acquires Air India by making highest bid

Highlights

Air India has gone back to Tata Sons after 68 years. For this, the bid was made by the government, the highest bid was made by Tata Sons.

New Delhi: Air India has gone back to Tata Sons after 68 years. For this, the bid was made by the government, the highest bid was made by Tata Sons. Tata Sons have bought Air India for 18 thousand crores.DIPAM Secretary Tuhin Kanta Pandey announced this by holding a press conference on Friday. Tata Sons will have 100% stake in Air India and its second venture Air India Express. While the ground-handling company Air India SATS Airport Services Private Limited will also have a 50 per cent stake.

The Secretary, Department of Investment and Public Asset and Management said that Tata's successful bid of Rs 18,000 crore includes taking a loan of Rs 15,300 crore and paying the rest in cash. The government will get Rs 2,700 crore in cash from Tata in lieu of 100 per cent stake sale.

Earlier this month, both Tata Sons and SpiceJet chairman Ajay Singh (in his personal capacity) had bid. Reports last month said that Tata had won the bid, although it was rejected by Union Minister Piyush Goyal. He then said that nothing has been finalized yet.

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