New Delhi: The Competition Commission of India (CCI) on Monday approved the acquisition of shareholding in India. Air India By Tales Private Limited – A wholly owned subsidiary of Tata Sons.
The proposed combination envisages acquisition of 100 percent equity share capital of Air India Limited and Air India Express Limited (AIXL) and 50 percent equity share capital of Air India SATS Airport Services Private Limited (AISATS) by Tales Private Limited (TALES) Is. An official statement from the CCI said.
Air India is wholly owned by the Government of India.
However, after much speculation, the Tata group bought the ailing carrier.
In October, the government signed a share purchase agreement with Tata Sons for the sale of Air India to low-cost carrier Air India Express and ground handling arm AISATS for Rs 18,000 crore.
This amount includes cash payment of Rs 2,700 crore and acquisition of carrier’s debt of Rs 15,300 crore.
As on August 31, Air India had a total debt of Rs 61,562 crore. Of the total amount, TALES will take Rs 15,300 crore and the remaining Rs 46,262 crore will be transferred to AIAHL.
As per the Supplementary Demands for Grants, an additional Rs 2,628 crore will be given as loans and advances to Air India for reimbursement of advances from the Contingency Fund of India.
(with inputs from agencies)
The proposed combination envisages acquisition of 100 percent equity share capital of Air India Limited and Air India Express Limited (AIXL) and 50 percent equity share capital of Air India SATS Airport Services Private Limited (AISATS) by Tales Private Limited (TALES) Is. An official statement from the CCI said.
Air India is wholly owned by the Government of India.
However, after much speculation, the Tata group bought the ailing carrier.
In October, the government signed a share purchase agreement with Tata Sons for the sale of Air India to low-cost carrier Air India Express and ground handling arm AISATS for Rs 18,000 crore.
This amount includes cash payment of Rs 2,700 crore and acquisition of carrier’s debt of Rs 15,300 crore.
As on August 31, Air India had a total debt of Rs 61,562 crore. Of the total amount, TALES will take Rs 15,300 crore and the remaining Rs 46,262 crore will be transferred to AIAHL.
As per the Supplementary Demands for Grants, an additional Rs 2,628 crore will be given as loans and advances to Air India for reimbursement of advances from the Contingency Fund of India.
(with inputs from agencies)
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