Malaysian Airlines company Air Asia Berhad has sold its 32.67% stake in AirAsia India to Tata Sons for Rs 276.10 crore. This leaves Air Asia Berhad’s stake in AirAsia India to just 16.33%.
Information given to stock exchange
In a filing to the Malaysian Stock Exchange Bursa Malaysia, the company said that the Board of Directors of Air Asia India Limited (AAIL) had issued a share purchase agreement to Tata Sons Ltd (TSL), the 49 crore shares with a face value of Rs 10, in AAIL on 29 December. Are sold under Tata Sons will have to complete the deal before March 31, 2021. Otherwise, this share purchase agreement will be canceled.
Tata Sons currently holds 51% stake
Prior to selling the stake, AirAsia Berhad had 49% stake in AAIL and Tata Sons had 51% stake in it. But after this deal, Tata Sons’ stake in the company has increased to 83.67%, while AirAsia Berhad’s stake has been reduced to only 16.33%. AirAsia Berhad stated that it would bring the put option in two phases to sell its remaining 16.33% stake.
The company will sell its remaining part in two phases
Air Asia will issue the first phase of the put option between 1 March 2022 to 30 May 2022 to sell its remaining 16.33% stake in Berhad AAIL. The second phase will come from October 1, 2022 to December 31, 2022. Air Asia Berhad will get Rs 138.27 crore from the remaining 16.33% stake. Actually Air Asia wants to exit the Indian business. That is why she wants to sell her entire stake in it.
Joint venture with Vistara too
Explain that the Tata group is already in a joint venture with Vistara. On the other hand, it is also planning to buy government company Air India. The Tata group has bid for this. The government has been trying to sell Air India for a long time. Explain that Tata has an emotional attachment with Air India because Air India was started by the Tata group itself.
The Tata group has been planning to increase its stake in Air Asia for a long time. The aviation sector has suffered a lot due to Kovid. This is why Air Asia wants to exit its Indian business. Its loss in the June quarter has been Rs 332 crore. It has never made a profit from Indian business in the last 6 years. Domestic aviation services were started in the country from 25 May onwards.
Air Asia refuses to invest
In November itself, the Tata group had planned to invest an emergency sum of $ 50 million in Air Asia. Whereas Air Asia ceased investment in Indian business. In November itself, Air Asia started planning the valuation of Indian business. It holds 49% in it. Air Asia made its debut in India 6 years ago. It currently has 2,500 employees. There are 600 pilots out of it. It has 30 fleet of Air Bus A320.
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