The federal government on Monday issued a letter of intent (LoI) confirming the sale of its 100 per cent stake in loss-making Air India to Tata Group for Rs 18,000 crore, a senior official mentioned.
Final week, the federal government had accepted a suggestion by Talace Non-public Restricted, a unit of the holding firm of salt-to-software conglomerate, to pay Rs 2,700 crore in money and takeover Rs 15,300 crore of the airline’s debt.
Subsequent to that, a LoI has now been issued to Tata confirming the federal government’s willingness to promote its 100 per cent stake within the airline.
“Letter of Intent has been issued at this time,” Division of Funding and Public Asset Administration (DIPAM) Secretary Tuhin Kanta Pandey mentioned.
Tatas now have to just accept the LoI, publish which the Share Buy Settlement (SPA) might be signed. Situations precedent to the transactions would have to be happy by Tatas earlier than they really take over the operations.
“Usually inside 14 days of acceptance of LOI, the SPA is signed. We count on the SPA to be signed pretty quick,” he mentioned.
The Secretary mentioned the deal is focused to be closed by December finish. After SPA is signed, the regulatory approvals must are available following which the handover course of begins.
Mr Pandey mentioned the deal is focused to be closed by December finish. After SPA is signed, the regulatory approvals must are available following which the handover course of begins.