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Govt Signs Share Purchase Agreement With Tata Sons For Air India Disinvestment

The share purchase agreement stipulates that the buyer has agreed to the terms set out by the target company for completing the transaction or acquisition.

Department Of Investment and Public Asset Management (DIPAM) Secretary tweeted that the Government has signed the share purchase agreement with Tata Sons for the disinvestment of national-carrier, Air India. 

The share purchase agreement is a legal document stipulating that the buyer and seller have agreed to the terms of the transaction or acquisition. The share purchase agreement was signed after the letter of intent was issued by the Government to Tata Sons' on October 11. The letter of intent lays out the terms set by the target entity to the potential buyer. 

Tata Sons had won the bid for acquiring 100 per cent stake in the national carrier on October 8. A consortium led by Spicejet promoter Ajay Singh came second with their bid of Rs 15,000 crore. The reserve price for the disinvestment bid was set at Rs 12, 906 crore.

The transaction is expected to close by December 2021.

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