Monday, December 14, 2020

Tatas, US-based fund Interups among bidders for debt-laden Air India

 

The latter's bid is made in partnership with a group of airline employees.



Tata Sons has emerged as a front runner to take over 100 per cent stake in the stressed national carrier Air India, sources involved in the sale process said on Monday after the expression of interest (EoI) deadline ended. There were other suitors as well including a consortium of Air India employees and US-based fund Interups.

Along with 100 per cent stake in the airline, the government is also selling its low-cost subsidiary Air Indian Express.

“Multiple expressions of interest have been received for strategic disinvestment of Air India. The Transaction will now move to the second stage,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said, adding that he’s satisfied that the sale process has moved to the next stage.

In 2018, the government had failed to garner a single EoI, following which it had to shelve the process. The disinvestment of Air India is crucial for the government to manage its finances as the debt-laden carrier will require over Rs 500 crore per month, according to government estimates.

Pandey, however, did not reveal either the identity of the bidders or the number of bids received for buying the national carrier.

A group of 209 employees of Air India has submitted an expression of interest in partnership with Interups Inc. From the employees’ side, the bid process is being led by Meenakshi Mallik, who is the current commercial director at Air India.

 

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