Air India privatisation: Bids allowed on basis of enterprise value
Addressing the concerns expressed by potential buyers amid fresh uncertainties caused by Covid-19, the Centre on Thursday changed bidding norms for privatisation of loss-making Air India by allowing bids on the basis of its enterprise value (EV).
The buyer won’t need to accept any pre-determined level of debt, but will require to pay 15% of EV quoted by it in cash.
The enterprise value to be quoted (market value of debt and equity) will comprise at least 15% in cash payment to the government and debt takeover by the bidders equivalent to 85% of the value quoted, aviation minister Hardeep Singh Puri said.
