Tata Group plans to take over 15% of Air India’s debt

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the Tata group could buy about fifteen% of Air India’s total debt as part of its financing offers to acquire the 100% participation Government in the national airline, Moneycontrol reported.

“The Tata Group has also offered to negotiate and acquire a specified amount, up to a maximum of 15% of Air India’s debt, if the government is willing to meet certain requirements it has set.”, states the source quoted by the newspaper. The Department of Civil Aviation, the Treasury Department, Air India and Tata Sons have not yet commented on the report. As part of its current attempt to sell its 100 percent stake in Air India, the government changed the bidding standards in October 2020 and based bids on the Enterprise value.

Under the current plan, the government will also take its 100 percent stake in it Air India, Air India Express and a 50% stake in the ground handling company AISATS. The offers for the freight forwarder are linked to the company value. Within this framework, at least 15% goes to the state and the rest is used to reduce the existing debt.

If the transaction goes through, it would be a nice comeback in history: Tata Group had founded Tata Air Services At 1932, renamed Tata Airlines six years later and was nicknamed “Maharaja of Heaven” at the time. It was listed on the stock exchange under the name Air India in 1946, before being partially nationalized by the New Delhi government two years later after India gained independence. Full nationalization was completed in 1953. In 2006 Air India merged with Indian Airlines.

Tata Group Wants to Take Over 15% of Air India's Debt 1 Air Journal

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