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SIA's financial outlay for Vistara-AI merger 'minimal' considering 25.1% stake buy in AI

Singapore Airlines (SIA), which commenced services to India more than 50 years ago, expects to immediately gain exposure to an entity that is four to five times larger in scale post the merger.

November 30, 2022 / 01:45 PM IST
Representative Image

Representative Image

The financial outlay for the Singapore Airlines Group under the proposed Vistara-Air India merger is "minimal when considered against the fact that it is acquiring a 25.1 per cent in interest in the enlarged Air India", according to a regulatory filing.

Singapore Airlines (SIA), which commenced services to India more than 50 years ago, expects to immediately gain exposure to an entity that is four to five times larger in scale post the merger.

On Tuesday, Tata group and SIA announced the merger of Vistara with Air India and subject to regulatory approvals, the deal is expected to be completed by March 2024.

The financial exposure of the SIA Group for the merger would effectively be the aggregate of the value of its 49 per cent interest in Vistara and the cash consideration of Rs 2,058.5 crore.