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Air Asia sells remaining stake in India operations to Air India

Air India has signed agreements to complete the acquisition of 100 percent shareholding in Air Asia India (AAI) and to subsidiarize it under Air India.

November 03, 2022 / 06:33 IST
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AirAsia Aviation Group Limited, the holding company of Capital A's airline group (formerly known as AirAsia Investment -- part of Malaysia’s AirAsia Group) informed the bourses on November 2 that it has sold its remaining stake in the India operations of the airline to Air India.

This means Air India has signed agreements to complete the acquisition of 100 percent shareholding in Air Asia India (AAI) and to subsidiarize it under Air India.

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Following the announcements made on December 29, 2020, and January 5, 2021, on the disposal of 32.67 percent equity shares in AAI with AAAGL receiving $37,660,000 in gross proceeds, the company announced the disposal of the remaining 16.33 percent equity shares in AirAsia to Air India Limited, an affiliate of Tata Sons Private Limited.

The company said in a statement: “All customary consents and regulatory approvals have been secured. AAAGL is expected to receive Rs 1,556,487,800 (equivalent to $18.83 million) in gross proceeds. There will be no gain or loss on the disposal as Capital A has marked the remaining 16.33% in AAI to its fair value.”