NEW DELHI:
Singapore Airlines
(SIA) said that it has secured the Indian government’s approval for foreign direct investment (FDI) of the planned merger between Vistara and Air India, in a regulatory filing submitted on Friday. SIA also confirmed its approval to become part of the expanded Air India entity as a result of the proposed merger.
SIA, which was 49% stake holder in Vistara, will get 25.1% stake in the merged airline by investing 2,059 crore in it with the approval now in hand.
Tata Group that holds ownership of Air India, will have remaining 74.9% stake in AI. Vistara operates as a joint venture between Tatas and Singapore Airlines, with a 51:49 ownership structure.
“The FDI approval, together with anti-trust and merger control clearances and approvals, as well as other governmental and regulatory approvals received to-date, represent a significant development towards the completion of the proposed merger,” the airline said in the filing to the Singapore Stock Exchange.
All other nods from agencies like the Competition Commission and DGCA are already in place.
The airline said that the merger’s completion remains contingent upon the parties’ compliance with applicable Indian laws, with the process anticipated to be finalised in the next few months. “At this juncture, completion of the proposed merger is anticipated to occur by the end of 2024,” it added.
The National Company Law Tribunal (NCLT) approved the merger in June, which will form one of the largest airline groups. It was initially announced in November 2022.
(With input from agencies)
