Tata Groups’s takeover of Air India is delayed for about a month till January due to the long procedures. Tata Sons company made the highest bid for the airline in October this year for 100 percent equity shares of Air India and Air India Express.
The government states that the company needs to make the payment of 2,700 crores in cash by the end of December. The SPA also mentioned that all the formalities of handover must be completed within 8 weeks. It also included that it can be extended based on the conditions.
According to an official, some of the regulatory approvals are still pending for handover, along with certain formalities that need to be completed. The official also mentioned that this process will be completed by January.
The acquisition of Air India is the first privatisation since 2003-04. Air India started suffering losses after it was merged with Air India Express in 2007-08.