The second phase of the strategic disinvestment of Air India will start on 5 January 2021 with the announcement of the names of the qualified bidders.
The process has been divided into two stages. In stage I, expressions of interest (EoI) have been submitted by interested bidders and they will be shortlisted based on eligibility criteria and other terms mentioned in the Preliminary Information Memorandum (PIM).
In the stage II, shortlisted interested bidders will be provided with a request for proposal (RFP) and thereafter there will be a transparent bidding process, said a presentation by the ministry.
The date of intimation to qualified interested bidders is 5 January 2021.
The presentation noted that in view of the post-Covid situation and severe impact on aviation sector, the government has considered various options related to disinvestment, including bidding parameters in the PIM and meetings of Inter-Ministerial Group and Core Group of Secretaries on Disinvestment have been held regularly to review the disinvestment process.
The interested bidders have been asked to indicate their interest on Enterprise Value of Air India.
The PIM for inviting EoIs issued on 27 January 2020 had offered 100 per cent sale of equity share capital of Air India Ltd (AIL), sale of AIL’s 100 per cent shareholding in the Air India Express Ltd (AIXL) and sale of 50 per cent shareholding in Air India Airport Services Private Ltd (AISATS).
In view of prevailing situation arising out of Covid-19, last date for submission of EOIs was extended up to 14 December 2020.
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