Explorer

Singapore Airlines To Infuse Rs 3,195 Crore In Air India After Vistara Merger

The merger will be completed on November 11, 2024 and will end up in Singapore Airlines controlling a 25.1 per cent stake in the enlarged Air India

Singapore Airlines is set to invest additional funds of Rs 3,194.5 crore in Air India after the merger of Vistara in November. The carrier will infuse the amount in the Tata Group-owned airline.

The merger will be completed on November 11, 2024 and will end up in Singapore Airlines controlling a 25.1 per cent stake in the enlarged Air India, reported PTI. The deal was announced earlier on November 29, 2022.

Vistara is a joint venture between Tatas and Singapore Airlines, with the latter controlling a 49 per cent share in the carrier. Considering the merger, Singapore Airlines (SIA) Group on Friday said that the deal includes 49 per cent interest in Vistara and Rs 2,058.5 crore in cash in exchange for a 25.1 per cent share in the new entity.

Also Read : Nirmala Sitharaman Says MSMEs Will Get Collateral Free Loans Of Up To Rs 100 Crore Via New Credit Model

After the merger, the company said that it expects to recognise a non-cash accounting gain of nearly 1.1 billion Singapore dollars.

The official release noted that the deal includes an agreement for SIA to contribute any share of the funding previously shared by Tata ahead of merger completion, along with relevant funding costs up to Rs 5,020 crore that would permit it to maintain 25.1 per cent stake in Air India. 

The funding will take place post merger completion and in November 2024 via subscription to the new Air India shares. The release further noted that additional capital infusions in the future will be considered on the basis of Air India’s requirement and available funding options.

Recently, both SIA and Air India also agreed to majorly expand their codeshare agreement, adding 11 Indian cities and another 40 global destinations to their network. The merger will also mark a major consolidation in the rapidly growing domestic aviation market.

Also Read : FPIs Dump Indian Equities Worth Nearly Rs 20,000 Crore In Nov So Far, See What Happened

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

Maharashtra: Two Latest Exit Polls Show Landslide Victory For Mahayuti, BJP To Emerge As Largest Party
Maharashtra: Two Latest Exit Polls Show Landslide Victory For Mahayuti, BJP As Largest Party
Pakistan: Over 50 Killed, 20 Injured As Militants Open Fire On Passenger Vehicles In Khyber Pakhtunkhwa
Pakistan: Over 50 Killed, 20 Injured As Militants Open Fire On Passenger Vehicles In Khyber Pakhtunkhwa
International Criminal Court Issues Arrest Warrants Against Israeli PM Netanyahu, Ex-Minister Gallant
Arrest Warrants Issued Against Israeli PM Benjamin Netanyahu, Ex-Minister Gallant
Rahul Gandhi Blames 'Adani Power' After Outage During Presser, BJP Quips 'Jairam Ramesh Might Have Cut It'
Rahul Gandhi Blames 'Adani Power' After Outage During Presser, BJP Quips 'Jairam Ramesh Might Have Cut It'
Advertisement
ABP Premium

Videos

India Emerges as G20's Growth Leader, Check Out the Latest GDP Rankings | ABP NewsAirtel-Nokia Partnership: Nokia’s Spectacular Comeback, Shakes Up the Telecom Sector | ABP NewsAdani Group in Turmoil: Bribery Scandal Rocks Shares, Plunge by 20% | ABP NewsPLI Scheme: Transforming India's Manufacturing Sector into a Global Powerhouse

Photo Gallery

Embed widget