Deconstructing the deal: What Air India takeover means for Tata Group
The Tata group is effectively taking over a fourth of Air India’s total debt, will have to retain at least 51% stake and its 12,000 employees for a year, stick to a business continuity clause for three years and retain its brand for 5 years, as part of the disinvestment deal.
The Tata group subsidiary Talace Pvt Ltd, Friday won the bid for Air India and its subsidiary Air India express. The total bid based on the enterprise value is Rs 18,000 crore. Of that Rs 15,300 crore will be the airline’s debt taken over by the Tatas while the rest Rs 2,700 crore will be cash paid to the government.
