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Tata, Spicejet left in race to acquire Air India, other EoIs rejected: report
08 March 2021
Tata Group and private airline Spicejet are the only remaining bidders for acquiring Air India as all the other expressions of interest (EoI) have been rejected after evaluation, reports citing sources close to the development said.
The odds seem to favour Tata Sons, which is reported to be planning consolidation of its aviation business comprising the two joint ventures of Air Asia and Vistara.
The group is also reported to be setting up a strategy team headed by group chief financial officer Saurabh Agrawal to explore various possible solutions such as mergers and on rebranding its airline ventures, reports citing sources close to the development said.
Mumbai: A group of Air India Ltd. employees has been ruled out of a bidding process to take control of the loss-making national carrier, as the government moves ahead with its years-long attempt to offload the airline. I write to you with a heavy heart on the outcome of our bid to acquire Air India, the airline s commercial director Meenakshi Malik wrote in a letter to employees dated March 8. We have been unsuccessful in qualifying to the next phase of the Disinvestment Acquisition process.
Citing a letter from Ernst & Young, which is advising the government on the sale, Malik said the group didn t meet eligibility requirements. They include submitting three years of audited financial statements for foreign consortium members and being an appropriately regulated foreign investment fund. The group of employees partnered with a Seychelles-based fund for the bid.
Air India Employess’ consortium out of bid race The government is looking to complete the process of the airline’s privatisation by next fiscal
The proposal of the employees of Air India to take over the running of the ailing carrier has been rejected by the transaction adviser, leaving the Tatas as the favourite in the privatisation race along with Pawan Ruia and SpiceJet promoter Ajay Singh .
“The financial bids would be called soon as the first stage of the process is over,” sources said.
The employees had partnered a Seychelles-based fund for the venture. Transaction adviser EY had questioned the operations of the fund which led to the rejection.
AI divestment bid: Air India Employees Consortium disqualified from process
AI Employees Consortium submitted an expression of interest , last year, to participate in strategic divestment of the national carrier Air India. (Image Source: File Photo)
Updated: Mar 9, 2021, 05:06 PM IST
Air India Employees Consortium, which participated in the Air India divestment bid, was disqualified from the divestment process by the Transaction Advisor to the Government of India (Ernst & Young LLP) on Monday.
AI Employees Consortium submitted an expression of interest , last year, to participate in strategic divestment of the national carrier Air India.
The Government of India has informed the AI Employees Consortium by an email on Monday that their submission for the Air India disinvestment acquisition process is not fulfilling the eligibility.
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