The central government on Monday issued a letter of intent (LoI) confirming the sale of its 100% stake in loss-making Air India to Tata Group for Rs 18,000 crore.
Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM) took to Twitter and confirmed the news and also said that soon a Share Purchase agreement (SPA) will be signed with the company.
Last week, Talace Pvt Ltd, a subsidiary of the Mumbai based conglomerate Tata Group had placed a bid of Rs 18,000 which was accepted by the government.
As per conditions set by the central government, the bidder had to pay Rs 2700 crores in cash and the rest of the amount Rs 15,300 crore has to be consumed as part of the national carrier’s debt.
Post acceptance of the Letter of Intent by the Tata Group, the government will sign a share purchase agreement with the company. Officials from the Bombay House have to agree to the conditions set by the government before the final takeover of the Maharajah.