The government on Wednesday issued a preliminary information memorandum (PIM) while inviting an expression of interest (EoI) from parties to sell 76% of its stake in the national carrier Air India, which owns 100% shareholding in low-cost airline Air India Express Ltd and 50% in Air India SATs, which provides airport ground handling services.
An open comparative bidding process will determine the new buyer and the disinvestment process is expected to be completed by December 2018.
The government has stipulated a net worth criteria of ₹5000 crore for parties to bid for Air India.
Ernst and Young has been appointed as the transaction adviser.
The 204-page PIM document put up on the Ministry of Civil Aviation website also clarified that Air India Engineering Services Ltd (AIESL) and Air India Air Transport Services Ltd (AIATSL) will not be part of the Proposed Transaction and will be hived off (along with any receivables or payables related to these subsidiaries) through demerger or other appropriate mechanisms which may be determined by Ministry of Civil Aviation in consultation with E&Y, the transaction advisers before the closing of the proposed transaction.
‘Withdraw order’
West Bengal Chief Minister Mamata Banerjee on Wednesday demanded scrapping of the order. “I am sorry to read in the media about the Govt. inviting expression of interest for selling Air India, the jewel of our nation. We want this order to be withdrawn immediately,” Ms. Banerjee said in a Twitter post.
