Tata Group has emerged victorious in the bidding war to acquire national carrier Air India against Spice jet promoter Ajay Singh, Tuhin Kanta Panday, Secretary, Department of Investment and Public Asset Management (DIPAM) announced on Friday, October 8.
The winning bid was announced to be Rs. 18,000 crores and the sale of the carrier will give Tata Sons an additional 100 per cent stake in AI Express Ltd and 50 per cent stake in Air India SATS Airport Services Private Ltd.
The news comes just days after rumours about the Tata Group winning the bid in the Air India disinvestment case began to surface owing to a report by Bloomberg. The rumours were promptly shut down by the DIPAM Secretary on October 1.
In a press conference, Tuhin Kanta revealed that the decision was taken by a panel constituted by the Cabinet Committee on Economic Affairs (CCEA) known as Air India Specific Alternate Mechanism. The AISAM included Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Civil Aviation Minister Jyotiraditya Scindia and Commerce and Industry Minister Piyush Goyal.