The Tata group is poised to buy Air India this week, with senior executives stating that the closing balance sheet will be finalised in the coming days. On the 27th and 28th of January, a board meeting will most likely be held to provide essential approvals. Following that, the incumbent board members would resign. Air India’s Director (Finance) Vinod Hejmadi wrote to several of the airline’s executives, indicating that the disinvestment process will be finished in the next few days and that the airline’s closing balance sheet had to be submitted to Tatas by the end of the day today.
“The disinvestment of Air india is now decided to be on the 27th January 2022. The closing balance sheet as of 20th January has to be provided today 24th January so that it can be reviewed by Tatas and any changes can be effected on Wednesday,” he wrote.
In a long-running disinvestment process that saw just two bidders place financial offers, a wholly owned subsidiary of the Tata Group won the bid to buy Air India. To buy Air India, its subsidiary Air India Express, and the ground-handling joint venture AISATS, the Tata group business cited an enterprise value of Rs 18,000 crore. After releasing a letter of intent (LoI), the government signed a Share Purchase Agreement (SPA) with Tata Group in October to sell the airline’s whole share. Hejmadi requested top executives’ cooperation in completing the disinvestment process in a communication to them.
“The next three days will be hectic for our department and I request all of you to give your best in these last three-four days before we get divested. We may have to work late in the night to complete the task given to us. I seek the cooperation of one and all,” the airline’s Director (Finance) said.
