Correct Answer : Air India
In what will be its first M&A under new owner Tata Sons, Air India has proposed to buy low-cost carrier AirAsia India, according to an application with the Competition Commission of India (CCI). The move will see Malaysia's AirAsia exiting the airline venture nine years after it entered India with high hopes.
AirAsia owns 16.33% in the India unit and, according to the shareholders' agreement between the company and Tata Sons, the latter can acquire the former's stake directly or through an affiliate. Since Air India is now an affiliate of Tatas, the purchase of AirAsia's stake has been routed through it, sources said.
Air India will buy
AirAsia's 16.3% in the airline venture for
Rs 139 crore. The remaining stake of
83.7% in AirAsia India is held by Tata Sons. This too will be purchased by Air India. Tata Sons had acquired Air India through its 100% arm Talace in a
Rs 18,000-crore equity and debt deal on January 27 this year..
Source : Times of india
