Tuesday, December 29, 2020

Tatas to hike stake in AirAsia India to 83.67%

New Delhi: The Tata Group is hiking its stake in AirAsia India (AAIPL) from 51% to 83.67%. Tony Fernandes' AirAsia group will have its stake reduced in this JV from 49% to 16.33%, accordingly. AirAsia Berhad informed the Malaysian stock exchange on Tuesday about selling its 32.67% stake in AAIPL to Tatas for about $37.7 million.

"The board of directors of AirAsia wishes to announce that its wholly owned subsidiary, AAIL, has on December 29, 2020, executed a share purchase agreement (SPA) with Tata Sons Private Limited (TSL) to sell equity interest of 32.67%... to TSL for a total consideration sum (purchase consideration) of $37,660,000," the regulatory filing said.

Comments have been sought from Tatas and AAIPL and are awaited.

The transaction puts Tata Group firmly in command with the budget carrier which is going to be its bid vehicle for Air India. Tata's other airline partner, Singapore Airlines (SIA), with whom they run the full service JV Vistara, is yet to agree on the Air India bid due to its own financial challenges in the pandemic.

Sources say all attempts will be made to bring SIA on board for the AI venture at a later date due to its proven credentials as a long haul airline.

29/12/20 Saurabh Sinha/Times of India

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