Air India’s financial bids are likely to be available September 15: Minister

Air India’s financial bids are likely to be available from qualified applicants (QIBs) by September 15 this year, State Aviation Minister V V K Singh said on Thursday.

The Center hosted Air India’s Expression of Interests (EoIs) on January 27, 2020. The last day of delivery – after many extensions due to COVID-19 – for EoIs was December 14, 2020.

“Multiple EoIs have been obtained by Transaction Advisor. EoIs have been tested by Transaction Advisor for selecting QIBs. , “said Singh.

“Financial bids may be available on September 15, 2021,” he added in response to a written reply to a question in Lok Sabha.

The host has not yet revealed the names of the QIBs.

With a total airline debt of Rs 60,074 crore as of March 31, 2019, the buyer will be required to deduct Rs 23,286.5 crore, while the rest will be transferred to Air India Assets Holding Ltd (AIAHL), a special vehicle, the EoI floated in January 2020.

Singh told Lok Sabha on Thursday: “Air India’s non-profit assets will be used to settle Air India’s debt to AIAHL.”

Currently, Air India is trying to sell a few of its facilities to reduce its debt.

The fixed prices for Air India’s buildings were adjusted by the Air Force Aviation Control Committee as the highest value obtained by three analysts, the minister said.

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“The oversight committee has approved a 10 percent reduction in the prices of 16 buildings after previous attempts to sell the properties failed to attract applicants,” Singh said.

The agency announced in October 2020 that Air India’s competition will be based on business value rather than equity.

The business value of a company includes the amount of equity, debt and money with the company. Equity value measures the value of a company’s shares.

The institute said in October 2020 that any valuable business is a consumer quote, at least 15 percent of that should be given in cash to the government and the remaining amount should be taken as a loan with Air India.
Following his unsuccessful attempt to sell Air India in 2018, the government in January last year resumed the segregation process and invited bids to sell 100 per cent of its equivalent on a state-owned airline, including Air India’s 100% shares held by Air India. . Express Ltd and 50% in Air India SATS Airport Services Private Ltd.

In 2018, the government had proposed to release 76 per cent of the national cargo shares and transfer the management of private players.

However, this offer has failed to attract anyone who will agree to purchase when the first bid deadline closes on May 31, 2018.

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