Over 200 employees of Air India have formed a consortium with US-based fund Interups Inc to bid for the airline. The last date for submission of EOI submission to buy Air India ends on December 14.
The expression of interest proposes 51 per cent stake under employees and the rest 49 per cent with Interups. Employees from multiple departments come together for the consortium.
The bidding conditions of Air India allow bid by employees. However, disinvestment guidelines mandate that the company will not be able to partner any private company. It has to partner with either a bank or a financial institution.
The fund manages over 27,000 retirement accounts of NRIs in the US.
As per reports, the Tata Group has also submitted an expression of interest for the beleaguered national carrier.
The government has substantially sweetened the sale terms for Air India. It has offered for sale its 100 per cent stake in AI and AI Express — instead of 76% in the first attempt — and the entire 50 per cent in ground handling joint venture AI-SATS.
The government, on December 10, said it will intimate qualified interested bidders (QIBs) of Air India on January 5 next year, instead of the earlier decided date of December 29, 2020.
While the government has not extended the deadline for EoIs (Expressions of Interest) for the national carrier, the interested entities are required to submit the physical bids within 15 days from December 14 — the last date for submitting EoIs.
As per the Air India EoI floated by DIPAM in January, of the airline’s total debt of Rs 60,074 crore as of March 31, 2019, the buyer would be required to absorb Rs 23,286.5 crore, while the rest would be transferred to Air India Assets Holding Ltd (AIAHL), a special purpose vehicle.
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