“(The) Request for Proposal (RFP) along with draft Share Purchase Agreement (SPA) have been shared with QIBs (qualified interested bidders) by the transaction advisor on 30.03.2021 for submission of financial bids. The financial bids are likely to be received by 15.09.2021,” Minister of State for Civil Aviation, General (Retd) V.K. Singh, said in response to a question.
The Centre has not revealed the names of the QIBs as yet, though it maintains that it received “multiple” expressions of interest for Air India’s privatisation according to the reports published in aviationindia.net.
After an unsuccessful attempt to sell Air India in 2018, the government in January last year restarted the divestment process and invited bids for selling 100 per cent of its equity in the state-owned airline, including Air India’s 100 per cent share holding in Air India Express Ltd and 50 per cent in Air India SATS Airport Services Private Ltd.
In October that year, the government sweetened the deal and tweaked a key bidding criteria allowing private players to quote an enterprise value (EV) for the airline instead of an equity value. Enterprise value of a company includes the equity value, debt as well as cash with the company.
