In a major step to consolidate the group’s aviation business, Tata Sons, the holding company has increased its stake in AirAsia India to 83.67% from 51%. The Tata group bought 32.67 % stake from AirAsiaBerhad at Rs 276.29 crore, the Malaysian airline told the Kuala Lumpur-based exchange Bursa on Tuesday.
Tata Sons also has a call option on the remaining 16.33 % stake that its partner holds in the airline. Tatas would exercise the right, thereby giving a total exit to the Tony Fernandes owned group by the middle of 2021.The 51-49 joint venture partnership between the Tatas and the AirAsia group had started operations in 2014 as a low-cost carrier in the country.
Industry observers said this was the first among many steps by the Tatas towards consolidation of its aviation business. Chairman N Chandrasekaran had earlier said that consolidation is a route that the group would follow.Beside AirAsia India, Tatas own 51 % stake in full service carrier Vistara. It is also in the race to acquire state-owned Air India.
Courtesyg: Google (photo)
