March 17th set as deadline for submission of bids as government seeks to sell 100% stake in Air India.
A Suitable Buyer: The Government of India today has once again kicked off the disinvestment process for Air India, after a failed attempt in 2018 and has set March 17th as the deadline for submitting the expression of interest (EoI).
As part of the strategic disinvestment, Air India would also sell 100% stake in low-cost airline Air India Express and 50% shareholding in AISATS - a joint venture between Air India and Singapore Airlines. Management control of the airline would also be transferred to the successful bidder. Moneycontrol
In 2018, the government had offered to sell 76% stake in the national carrier. Unfortunately, this offer saw no takers then. This time around, the deal is much sweeter. For bidders, having full operational freedom without government interference is a huge positive.
However, even under the new terms, valuations remain rather high. In addition to this, experts opine that "one reason why the deal may not go through is that investors may find it difficult to gulp the entire piece at a go. A sale done in parts is more feasible." Here's a look at why Air India's sale may struggle to fly even with better terms.
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