Government has signed share purchase pact with Tata Sons to offer Air IndiaDays after Tata Sons emerged as the successful bidder to take over nationwide provider Air India, the federal government on Monday tattooed a share purchase pact with it to sell the debt-laden business for Rs 18,000 crore.Earlier the federal government had accepted a deal by Talace Private Limited, a system of the holding company of the conglomerate, to pay Rs 2,700 crore cash and take over Rs 15,300 crore of the airline company's debt.Subsequent to this, on October 11 a Letter of Intenet (LoI) was issued to the Tata Group, therefore formally starting the procedure of offering federal government's 100 per cent stake in Air India.
Share Purchase Arrangement signed today by Federal government with Tata Sons for strategic disinvestment of Air India, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.Air India's Director Finance Vinod Hejmadi, Civil Air Travel Ministry Joint Secretary Satyendra Mishra and Supraprakash Mukhopadhyay from the Tata Group signed the share purchase agreement (HEALTH SPA).
The next step involves looking for regulatory clearances, including those from the Competitors Commission of India by Tata Sons prior to the actual handover of the airline occurs by December-end.