Tata Sons likely to make offer for Air India by end of month: Report

The Tata Group is expected to make an offer for Air India by the end of the month.

The Tata Group is probably trying to make a formal offer to pay for cash-strapped national carrier Air India by the end of this month.

According to the Economic Times published report, the Tata Group has already started its steady, earnest and energetic  bid close to the official deadline at the end of this month. Currently, there is not going any debates and discussion on funding or business structure. The publication, by the Tata Sons spokesperson, confirmed that all of that will be discussed when due diligence is complete.

Advertisement

The spokesperson also confirmed that there is no plan to bring in a financial partner. The report further added that the other airlines seem to be interested in biding for Air India Express separately. But official close to the Tata group who are familiar with the bidding process express the publication that the entire airline is on the block as one entity at the moment.

The report also hinted that Tata Group has engaged top legal firm and consultants to conduct the due diligence before bidding for the national carrier. While there is also speculation that Tata Group is thinking to merge with AirAsia and Air India into single entity, officials from  conglomerate told Economic Times that no such discussions have taken place formally.

Total debt of Air India’s show at Rs 58,351.93 crore as on March 31, 2019. The government is lending 100 per cent stake in the national carrier to potential bidders besides relaxing a substantial part of the airline’s debt.

The report further added that bidder for airline will have to absorb Rs 23,286.50 crore of the total debt while the remaining will be transferred to Air India Assets holding Ltd.

Ahmedabad Plane Crash