Tata emerges frontrunner to acquire Air India

Tata emerges frontrunner to acquire Air India

NEW DELHI: India’s conglomerate Tata Group has emerged as the frontrunner to acquire debt-stricken Air India as the government looks to close one of its most ambitious disinvestment projects, sources revealed. The India government is yet to formally approve Tata’s winning bid, but people with direct knowledge of the matter said the Mumbai-based conglomerate has placed the highest bid – over $1.029 billion (Indian rupee 5,000 crore) more than SpiceJet promoter Ajay Singh, who participated in his individual capacity in the bidding process.

Tea-to-steel Tata Group confirmed two weeks ago that it had submitted a bid to buy debt-crippled national carrier Air India, which it owned decades ago before the airline was nationalized. The Indian government has sought to sell its entire stake in the ailing company, setting a deadline for bids for Wednesday after failing previously to secure any interest for a majority share.

A senior government official said that once the winner is announced, the share-purchase agreement will be signed with the winning entity within 15 days, and the transfer process will begin immediately afterward. Representatives of both bidders were called for meetings on two occasions earlier this week, during which the share-purchase agreement was discussed to help them take