Tata Sons won the bid to acquire national carrier Air India. The company placed a winning bid of Rs 18,000 crore to re-acquire the airline that it ceded to the government in 1953 when Air India was nationalised.
The government will get 2,700 crore cash from Tatas for the sale of its 100 per cent stake. This transaction is expected to be completed by the end of this year according to Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM).
Tatas will however have to retain all employees of Air India for a period of one year but can later offer a voluntary retirement scheme (VRS) in the second year.
Tata Sons bid of Rs 18,000 crore was higher than the reserve price of Rs 12,906 set by the government.
After winning the bid, Ratan Tata tweeted ”Welcome back, Air India” and attached a message with a photo.