New Delhi: Tata Group, SpiceJet promoter Ajay Singh and several other bidders have submitted their financial bids for the debt-ridden purchase. Air India A company spokesperson confirmed this on Wednesday.
Aviation Minister Jyotiraditya Scindia had clarified that September 15 would be the last day to bid for the airline.
Eligible bidders, including cash-strapped SpiceJet founder Ajay Singh, have also submitted bids in their personal capacity.
Comments have been sought from Ajay Singh’s team and are awaited.
Tata – who founded Air India in 1932 – is seen as the frontrunner to get the airline back.
Air India was nationalized in 1953. JRD Tata, the then chairman of the Tata Group, described the nationalization move as a “backdoor-taking government”.
In a note to the then Prime Minister Jawaharlal Nehru, he had said: “I can only express my regret that we should have taken such an important step without a proper hearing.”
JRD Tata remained at the helm of Air India for many years and took the airline to new heights under his command.
Counted among the best in the world at the time, Air India’s expertise was sought during its take-off phase by several airlines, many of them now global giants.
He was removed from the airline in 1977 by the then Janata Party government. Air India’s gradual decline began a few decades after that and accelerated after 2007 when the airline merged with Indian Airlines, which saw its financial position deteriorate.
The government has made it clear that failure to sell Air India, which has a combined debt-cum-loss of around Rs 1 lakh crore, would mean its closure.
However, with the Tata group bidding for it, Air India is set for a fresh start under its founder.
While the government – which is offering to sell its 100% stake in Air India and Air India Express and its entire (50%) stake in AI SATS – is keen to hand over the airline to the highest bidder by the end of calendar year 2021 . Sources say the same is likely to happen by the end of the current financial year.
Instead of requiring AI to borrow at a pre-determined level of Rs 23,000 crore, eligible bidders under the existing terms of sale would quote an enterprise value (EV) based on their estimate of the combined value of AI’s equity and debt. financial bid.
The winning bidders will be decided on the basis of who quotes the highest EV value. At least 15% of this value has to be paid in cash, while the rest can be taken as loan.
The state is also likely to offer compensation to the successful bidder from lawsuits filed against AI by foreign mega corporations for recovery of arbitration awards won against India. AI is countering these claims.
The government had received various expressions of interest for Air India. The Transaction Advisor shared the Request for Proposal along with the Draft Share Purchase Agreement with the eligible bidders on March 30, 2021 for submission of financial bids.
The aviation ministry has asked AI to be prepared for post-disinvestment issues such as asking employees to vacate staff colonies within a given time frame; To ensure transfer of PF accounts to EPFO and continuation of health benefits to them through CGHS.
Aviation Minister Jyotiraditya Scindia had clarified that September 15 would be the last day to bid for the airline.
Eligible bidders, including cash-strapped SpiceJet founder Ajay Singh, have also submitted bids in their personal capacity.
Comments have been sought from Ajay Singh’s team and are awaited.
Tata – who founded Air India in 1932 – is seen as the frontrunner to get the airline back.
Air India was nationalized in 1953. JRD Tata, the then chairman of the Tata Group, described the nationalization move as a “backdoor-taking government”.
In a note to the then Prime Minister Jawaharlal Nehru, he had said: “I can only express my regret that we should have taken such an important step without a proper hearing.”
JRD Tata remained at the helm of Air India for many years and took the airline to new heights under his command.
Counted among the best in the world at the time, Air India’s expertise was sought during its take-off phase by several airlines, many of them now global giants.
He was removed from the airline in 1977 by the then Janata Party government. Air India’s gradual decline began a few decades after that and accelerated after 2007 when the airline merged with Indian Airlines, which saw its financial position deteriorate.
The government has made it clear that failure to sell Air India, which has a combined debt-cum-loss of around Rs 1 lakh crore, would mean its closure.
However, with the Tata group bidding for it, Air India is set for a fresh start under its founder.
While the government – which is offering to sell its 100% stake in Air India and Air India Express and its entire (50%) stake in AI SATS – is keen to hand over the airline to the highest bidder by the end of calendar year 2021 . Sources say the same is likely to happen by the end of the current financial year.
Instead of requiring AI to borrow at a pre-determined level of Rs 23,000 crore, eligible bidders under the existing terms of sale would quote an enterprise value (EV) based on their estimate of the combined value of AI’s equity and debt. financial bid.
The winning bidders will be decided on the basis of who quotes the highest EV value. At least 15% of this value has to be paid in cash, while the rest can be taken as loan.
The state is also likely to offer compensation to the successful bidder from lawsuits filed against AI by foreign mega corporations for recovery of arbitration awards won against India. AI is countering these claims.
The government had received various expressions of interest for Air India. The Transaction Advisor shared the Request for Proposal along with the Draft Share Purchase Agreement with the eligible bidders on March 30, 2021 for submission of financial bids.
The aviation ministry has asked AI to be prepared for post-disinvestment issues such as asking employees to vacate staff colonies within a given time frame; To ensure transfer of PF accounts to EPFO and continuation of health benefits to them through CGHS.
.