The Modi government had extended the deadline for receiving expressions of interest (EOI) from bidders interested in buying Air India (AI) to 31 May.
But it is reported that the government is yet to receive a single formal EoI — even after the debt-laden “national carrier” was paraded around the world in “road shows” to elicit interest from international airlines, according to the Business Standard (BS). Executives of EY have reportedly been meeting the management of international airlines, including Lufthansa, Air France-KLM and Singapore Airlines. As part of the road shows, there have been presentations to explain the sale process and conditions, etc.
On offer is 76% equity stake in AI — along with 100% stake in AI’s subsidiary Air India Express Limited and the 50% holding in joint venture Air India SATS Airport Services.
But the prospects currently seem worse while the deadline (which was extended from the initial date of 14 May) looms large, because even the international airlines that were reportedly interested earlier are now unlikely to bid. Meanwhile, no Indian company has still come forward.
The eligibility criteria for the interested bidders is a minimum net worth of Rs 5,000 crore and net profit for three preceding years. Indian companies can bid either solo or form a consortium among themselves or with foreign companies, though the majority stake must be held by an Indian firm.
28/05/18 News Click
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But it is reported that the government is yet to receive a single formal EoI — even after the debt-laden “national carrier” was paraded around the world in “road shows” to elicit interest from international airlines, according to the Business Standard (BS). Executives of EY have reportedly been meeting the management of international airlines, including Lufthansa, Air France-KLM and Singapore Airlines. As part of the road shows, there have been presentations to explain the sale process and conditions, etc.
On offer is 76% equity stake in AI — along with 100% stake in AI’s subsidiary Air India Express Limited and the 50% holding in joint venture Air India SATS Airport Services.
But the prospects currently seem worse while the deadline (which was extended from the initial date of 14 May) looms large, because even the international airlines that were reportedly interested earlier are now unlikely to bid. Meanwhile, no Indian company has still come forward.
The eligibility criteria for the interested bidders is a minimum net worth of Rs 5,000 crore and net profit for three preceding years. Indian companies can bid either solo or form a consortium among themselves or with foreign companies, though the majority stake must be held by an Indian firm.
28/05/18 News Click
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