Tata Group bids for taking over Air India
BI Desk || BusinessInsider
A aircraft of Air India/Photo collected
Tata Group has placed their financial bids for taking over cash-strapped Air India, according to newspaper reports in India.
Reports say SpiceJet’s Ajay Singh is the other contender in the bidding.
The Government of India has decided to divest 100 percent stakes in Air India, Air India Express and a 50 percent share in ground handling company AISATS.
“The bids for the national carrier are being sought at enterprise value instead of equity value as the government had changed the bidding parameter for Air India,” reports The Hindu.
As per the divestment plan, 15 percent of the total enterprise value must be paid in advance in cash to the government and the remaining will be used to adjust the loans of the airline.
A group of cabinet ministers led by Amit Shah, home minister of India, will sit soon to decide on the winning bidder for Air India.
