Federal government issues letter of intent to Tata Group for sale of Air IndiaThe federal government on Monday provided 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 main said.Last week, the government had accepted a deal by Talace Private Limited, an unit of the holding business of salt-to-software corporation, to pay Rs 2,700 crore in money and takeover Rs 15,300 crore of the airline company's debt.Subsequent to that, a LoI has now been released to Tata validating the federal government's determination to offer its 100 percent stake in the airline.
Letter of Intent has actually been issued today, Department of Financial Investment and Public Possession Management (DIPAM) Secretary Tuhin Kanta Pandey said.Tatas now have to accept the LoI, post which the Share Purchase Agreement (MEDICAL SPA) will be signed.
Conditions precedent to the transactions would require to be satisfied by Tatas prior to they actually take control of the operations.
Typically within 2 week of approval of LOI, the medical spa is signed.
We expect the day spa to be signed relatively quick, he said.The Secretary said the offer is targeted to be nearby December end.
After health club is signed, the regulative approvals will have to can be found in following which the handover process starts.Mr Pandey stated the deal is targeted to be closed by December end.
After health spa is signed, the regulative approvals will need to come in following which the handover procedure begins.