Tata Sons – the holding company of India’s largest conglomerate – on Wednesday submitted a financial bid to acquire loss-making state airline Air India.
Tuhin Kanta Pandey, secretary of the department that is running the privatisation process, tweeted of financial “bids” being received but did not say how many companies were in fray.
A Tata Sons spokesperson confirmed to PTI that the group has put in a bid for the national carrier.
No-frills airline SpiceJet’s Ajay Singh was considered to be another interested party in buying out the debt-laden airline. He did not respond to messages sent seeking confirmation if he had in his individual capacity put in a bid.
The financial bids will be evaluated against an undisclosed reserve price and the bid offering the highest price above that benchmark would be accepted. The bid will be initially examined by the transaction advisor before the recommendation is sent to the Cabinet for approval.
If successful, this will mark the return of Air India to the Tata fold after 67 years.
The Tata Group founded Air India as Tata Airlines in October 1932. The government nationalised the airline in 1953.
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