Tata bought 32.67% stake in Air Asia

Jan 5, 2021
Tata bought 32.67% stake in Air Asia [Image 1]

Business/India News : Malaysian Airlines company Air Asia India already owns the Tata group. But now, Tata Sons' stake in the company has increased to 83.67%. Currently, there is a joint venture between Tata and Air Asia.

Air Asia is a Malaysian company that wants to exit the Indian business, and has now sold a 32.67 stake to Tata Sons, worth $ 37.66 million, or Rs 276.10 crore. In this way, Tata Sons' share in Air Asia has increased from 51 percent to 83.67 percent.

Before selling the stake, AirAsia Berhad had a 49 per cent stake in Air Asia India and Tata Sons had a 51 per cent stake in it. Air Asia Berhad will bring a put option in two phases to sell its remaining 16.33 per cent stake.

Air Asia Berhad will receive $ 18.83 million, or Rs 138.27 crore from its remaining 16.33% stake.

Tata bought 32.67% stake in Air Asia [Image 2]

Looking at the business of Air Asia, the company had a loss of Rs 332 crore in the June quarter. Due to losses, Air Asia Berhad decided to close its business in India.

The company has not made any profit for the last nearly 6 years. Air Asia currently has 2,500 employees, of which 600 are pilots.

Along with increasing the share in Air Asia, the Tata Group's business of airlines in Asian markets is increasing. Anyway, the Tata group is emotionally connected with the airlines business. Not only this, the company is also in the race to buy Air India.

Piyush Verma

Piyush Verma

I am a Blogger and Web Designer.

Next Post Previous Post