Monday, January 27, 2020

Air India Sale: Employees to be given 3% shares under ESOP

The government, while inviting bids for Air India for the second time after two years, has said the selected bidder will have to ensure that 3 per cent of the equity shares of the acquired company are offered to its permanent employees as per terms of employee stock options or ESOP.

The detailed terms and conditions of ESOP, however, will be provided at the request for proposal or RFP stage.

"In the event, we (the Centre) are finally selected to enter into definitive documents as per the RFP for the proposed transaction, we shall ensure that 3% of equity share capital of the company is offered to the permanent employees of AI as per terms of an ESOP, on terms as may be specified at the RFP stage," the bidding document says.
The Centre will likely set aside about 98 crore shares under the ESOP, PTI quoted an official as saying.
The government has announced the sale of 100 per cent stake in debt-laden Air India. As part of the strategic disinvestment, Air India will also sell 100 per cent stake in low-cost airline Air India Express and 50 per cent shareholding in AISATS, a joint venture between Air India and Singapore Airlines that offers ground handling services.
Management control of the airline will also be transferred to the successful bidder.
27/01/20 Business Today
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