New Delhi: The government on Monday issued a letter of intention (LOI) who confirmed sales of 100 percent of its shares in Indian water robbery to the Tata Group for RS 18,000 Crore, a senior official said.
Last week, the government has accepted an offer by Talace Pvt Ltd, a unit of the conglomerate salt-to-software company, to pay Rs 2,700 Cash Crore and takeover Rs 15,300 crore from airline debt.
After that, the LOI has now been issued for the Tata that confirms the government’s willingness to sell 100 percent of its shares in the airline.
“Letter of Intent has been issued today,” said Secretary Dipa Tuhin Kanta Padney to PTI here.
Tatas now have to accept the LOI, post that the stock purchase agreement will be signed.
The condition of the precedent for transactions needs to be fulfilled by tatas before they really take over the operation.
“Usually in 14 days after receipt of LoI, the spa was signed.
We hope the spa is signed quite quickly,” he said.
Pandey said the deal was targeted to close at the end of December.
After the spa is signed, regulatory approval must come as follows the process of submission begins.
“When they gave a letter of acceptance, they would provide 1.5 percent payment security from EV values ​​namely Rs 270 Crore.
Rs 270 Crore will be the security of payment at the bank guarantee that will be accepted by us together with the receipt letter to LOI,” added Pandey.
Cash component from the agreement, he said, will come on the day of submission which will end in December.
This agreement also includes Air India Express and Ground Handling Aisats.
Tatas defeating offering Rs 15,100 Crore by a consortium led by Spicejet promoter Ajay Singh and RS Reserve price 12,906 Crore was set by the government for sales of 100 percent of its shares in making losses.
Although this will be the first privatization since 2003-04, Air India will be the third major airline brand in Tatas – it holds a majority interest in AirAsia India and Vistara, a joint venture with Singapore Airlines Ltd.
Air India will provide access to fleets 117 aircraft wide and narrow-body and air India Express Ltd.
24 other narrow body planes other than control of 4,400 domestic and 1,800 international parking slots at domestic airports, as well as 900 slots at the airport as Heathrow London.
In addition, the bidder will get 100 percent of the ARM Sleeve Water Express and 50 percent of Aisat, which provides cargo services and land handling at the Indian airports.
With Air India, Vistara, and Air Asia which has a combined market share at this time 26.9 percent, the Tata Group will emerge as the second largest domestic airline after Indigo after the third operation consolidation of the airline is complete.
Air India has suffered losses since the 2007 merger with the Indian airline.
It has a doubtful difference to have the highest number of employees on the scroll per aircraft.
Transactions with tatas do not include non-core assets including land and buildings, worth Rs 14,718 Crore, which will be transferred to Air India Asset Holding Limited (Aiahl).
Aiahl will also accommodate RS 46,262 Crore which remains airline debt (RS 61,562 CRORE total debt, which RS 15,300 Crore will go to Tatas).