The government issued a preliminary information memorandum, on Monday (January 27), for 100 per cent stake sale in national carrier Air India in a revised push to sell its national carrier.
The initial attempt to sell a majority stake in the airline failed to draw a single bid in 2018.
According to the bid document, as part of the strategic disinvestment Air India would also sell 100 per cent stake in low-cost airline Air India Express and 50 per cent shareholding in joint venture AISATS. The management control of the airline would also be transferred to the successful bidder.
The deadline for submitting the Expression of Interest (EoI) is March 17.
AISATS is an equal joint venture between Air India and Singapore Airlines. It offers ground handling services. Air India has also interests in Air India Engineering Services, Air India Air Transport Services, Airline Allied Services and Hotel Corporation of India.
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These entities are in the process of being transferred to a separate company – Air India Assets Holding Ltd (AIAHL) – and would not be a part of the proposed transaction, the document said.
According to the document, a debt of ₹23,286.5 crores would remain with Air India and Air India Express at the time of closing of the disinvestment. The remaining debt would be allocated to AIAHL.
EY is the transaction advisor for Air India disinvestment process.
Meanwhile, various Air India employee unions are scheduled to meet to discuss proposed privatisation of the debt-laden airline, sources said.
There are around a dozen recognised trade unions at Air India.
The meeting was scheduled after the government, earlier in the day, announced sale of 100 per cent stake in Air India.
(With inputs from agencies.)