Tata Sons In Talks To Buy Out Air Asia India's StakeJuly 09, 2020 19:36
Tata Sons In Talks To Buy Out Air Asia India's Stake:- Indian business tycoons Tata Sons are in plans to buy the stake of the Indian share in the Malaysian partner and carrier Air Asia. As per the report from the Business Standard Report, Tata is in plans to acquire a stake of 49% in Air Asia India which is held by Air Asia Berhad. The deal will be closed at a steep discount because of the crisis due to coronavirus pandemic. The aviation sector is completely shattered with the crisis. Air Asia is a joint venture of Air Asia Berhad and Tata Group. The Tatas own 51% of the state. Recently Tata Group emerged as the only bidder for India's carrier Air India.
Tata Group also operates Vistara Airlines in association with JV with Singapore Airlines. Tatas are in plans to consolidate their business in the aviation sector in India. Air Asia CEO Tony Fernandez has been demanding huge valuation for Air Asia India though Air Asia Berhad is in financial crisis. Air Asia has been looking for investors for some time and he hinted about the Indian market several times. The shares of Air Asia dipped down by 18%. They suffered a loss of 188 million USD in the March quarter and Air Asia India is looking at Rs 330 crores loss.