New Delhi: The government on Tuesday made it clear that Air India divestment is not a distress sale and that the process will be concluded only at the right price. “The Government retains the right to sell or not to sell AI if the bid price is found to be inadequate,” aviation secretary R N Choubey said, while adding that the divestment move has generated a lot of “positive buzz”. “We are confident that this move will be successful. But the transaction will happen only at the right price,” he said.
The government, which hopes AI has a new owner before the year-end, had earlier extended the last date for intimating qualified interested bidders eligible to bid for AI to June 15 from May 31. The last date for interested bidders to submit their expressions of interest has also been postponed to May-end from May 14. The highest bidder would be known by end of August, Choubey said, and will have to meet substantial ownership and effective control norms and get security clearances before the stake sale takes place.
The government is okay if the successful bidder of AI is a non-airline. Consultants have been hired to decide on enterprise value and do asset valuation. Based on this, a floor price will be set for the AI. If bids are lower than the floor price, then AI sale is unlikely to happen.
22/05/18 Saurabh Sinha/Times of India
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The government, which hopes AI has a new owner before the year-end, had earlier extended the last date for intimating qualified interested bidders eligible to bid for AI to June 15 from May 31. The last date for interested bidders to submit their expressions of interest has also been postponed to May-end from May 14. The highest bidder would be known by end of August, Choubey said, and will have to meet substantial ownership and effective control norms and get security clearances before the stake sale takes place.
The government is okay if the successful bidder of AI is a non-airline. Consultants have been hired to decide on enterprise value and do asset valuation. Based on this, a floor price will be set for the AI. If bids are lower than the floor price, then AI sale is unlikely to happen.
22/05/18 Saurabh Sinha/Times of India
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