The bid to take over Air India by a consortium of its employees, led by the airline’s Director (Commercial) Meenakshi Mallik, came to a naught after they failed to make it to the next round of the divestment process. Now, Tata Group and SpiceJet promoter Ajay Singh are among those left in the bid to take over the national carrier. Tata seems to the leading the race at the moment, according to reports.
Moneycontrol.com reported that Mallik, in a letter to Air India employees on March 8, stated that the consortium has been "unsuccessful in qualifying to the next phase of the Disinvestment Acquisition process".
The disqualification was attributed to non-fulfilment of eligibility requirements set out in the preliminary information memorandum (PIM) that had been issued regarding the strategic disinvestment of Air India.
The reasons listed included non-submission of three years of audited financial statements for foreign consortium member, non-submission of information or details, foreign consortium member not being an appropriately regulated foreign investment fund as stated in the PIM, another report said.
The Air India employee consortium had the backing of NRI businessman Laxmi Prasad and his New York-based Interups Fund. But with its exit from the bidding war, the focus has turned to Tata and SpiceJet promoter Ajay Singh.
Kolkata-based businessman Pawan Ruia is also rumoured to be have put in an expression of interest (EoI) for the privatisation of the national airline. The government is looking to complete the process of the airline's privatisation by next fiscal.
The submission of physical bids ended on December 29, 2020. The following day, the Department of Investment and Public Asset Management, in the eleventh corrigendum to its invitation of EoI for Air India stated that the Transaction Advisor, after evaluating the EoI received, will directly get in touch with the qualified bidders and how to proceed thereon.
As the process moves ahead, the shortlisted bidders will be given 'request for proposal' that will contain more details on the divestment and then will be followed by placing of a financial bid.
Not just Air India, the government also proposes to sell Air India Express and 50 percent shareholding in Air India Airport Services Pvt Ltd.
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