Govt issues letter of intent to Tata group-owned Talace for Air India sale

The Centre has issued Letter of Intent (LoI) to Tata group-owned Talace for the sale of national carrier Air India.

The wholly owned subsidiary of Tata Sons, Talace, last week emerged the successful bidder for sale of government’s shareholding in Air India. The share purchase agreement with the buyer of Air India will be signed soon, DIPAM Secretary Tuhin Kanta Pandey said in a tweet.

Talace had placed a bid to acquire Air India for Rs 18,000 crore, which involved retaining debt of Rs 15,300 crore of the carrier, and a cash component of Rs 2,700 crore.

Post signing of agreement, Conditions Precedent will be completed in about eight weeks. The government will prepare financial statement of the national carrier on a cut-off date before handing over the airline to Tatas. The transaction would be completed by the end of December.