The government on Monday issued a letter of intent (Loi) to sell 100 per cent stake in loss-making Air India to Tata Group for Rs 18,000 crore, a senior official said.
Thales Pvt. The government also agreed last week to acquire Rs 15,300 crore in air loans.
Following that, Tata has now been given a restriction to ensure that the government is willing to sell 100 per cent stake in the airline.
Tuhin Kanda Pandey, Secretary, Department of Investment and Public Property Management (DIPAM), said, “The letter of intent has been issued today.
Tatas will now have to accept the LOI, which will include a share purchase agreement (SPA). Conditions prior to transactions must be satisfied by TATA before it can actually take action.
The SPA is usually signed within 14 days of accepting the LOI. We expect the SPA to be signed very soon, ”he said.
The secretary said the target was to complete the deal by the end of December. After the SPA is signed, the regulatory approvals must come, following which the handover process begins.
Mr Pandey said the deal was aimed at ending by the end of December. After the SBA is signed, regulatory approvals must come after the handover process begins.