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Air India employees planning to bid for troubled carrier: Report

Among other bidders, founder of the Maharaja, the Tata Group, are likely candidates

December 03, 2020 / 01:15 PM IST

Some Air India employees are looking to bid for the Rs 90,000 crore debt-ridden airline along with a financial partner, The Times of India reported.

This comes as India’s national carrier is headed towards divestment – a move that was delayed due to the COVID-19 pandemic.

As per the plan, no single employee will have to contribute more than Rs 1 lakh to gain 51 percent in total of the troubled airline, while the investor keeps 49 percent, the report said.

Moneycontrol could not independently verify the report.

As per an internal note among the concerned employees, the group has sought out a private equity (PE) fund to invest in the company (51 percent for employees, and 49 percent for the investor) as they “financially do not have necessary wherewithal to participate in the bid process alone.”

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The noted further said that employees need to worry about money till expression of interest (EoI) is completed. “…after successfully completing stage 1, we are planning our bid in such a way that no single employee will have to contribute more than Rs 1 lakh,” it added.

Among other bidders, founder of the Maharaja, the Tata Group, seem likely candidates, it added.

Deadline for placing of bids is December 14 and qualified bidders will receive intimation on their offers by December 28 – subject to no further extensions or delays due to the pandemic.
Moneycontrol News
first published: Dec 3, 2020 09:01 am

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