As per the report of ZeeBiz, the Govt. of India has reportedly shortlisted Tata Group and SpiceJet for the bid to buy out Air India. The Tata Group and SpiceJet will now go into the next round of bidding.
“Tata Group and SpiceJet had given their expression of interest, which have been accepted by the government, facilitating Air India acquisition process. Soon they will be given invitations for financial bids. Before that due diligence, which will begin in a couple of weeks, will be taken care of. This process may take 2 to 3 months.”
Air India debt has been the biggest hurdle in its acquisition and the government is trying to write off debt before handing it over to private players to make it a profitable disinvestment exercise.
“This has been done to encourage a good bidding process as we have seen in the past that private players had expressed their reluctance to acquire this state-owned public sector carrier due to debt issue. The government will try to ensure that it does not pass off the debt to a private party.”
Anil Singhvi said one should keep an eye on SpiceJet and Tata Group as this will be one of the biggest acquisitions.