Govt residual stake in AI to have no lock-in period
NEWDELHI: The centre can sell the 24% stake it will be left with after the strategic disinvestment of Air India Ltd, when it chooses to, although it has restricted the strategic investor from selling its stake in the national carrier before three years, a finance ministry official said.
“The government can exit at any time after the transaction, if it wishes,” the official said on condition of anonymity.
He said the government can sell its stake anytime through the market, by issuing employee stock ownership plan (ESOPS) or as part of the mandated compulsory listing of Air India. AI had 11,214 permanent employees as on December 1, 2017 and 2,913 contractual employees.
In a document titled ‘Understanding the strategic sale agreement’, the department of investment and public asset management (Dipam) said there could be a lock-in period after which the government can exit from the balance holding at any time.
“This may be desirable in some cases where the strategic partner may like to have government as a partner for some time at least, during which period, using the government’s presence, some issues (licenses, land issues etc) involving dealings with the government can be resolved quickly,” it added.
The document seeking expressions of interest, prepared by the transaction adviser EY India, did not mention a lock-in period for the minority stake but said that it is the intention of the government to sell its residual shareholding through the process of dispersed disinvestment and not as a block “on such terms as may be prescribed in the RFP (request for proposal)”. Air India Express has a fleet of 23 B737-800 NG aircraft, which includes six aircraft taken on dry lease during In the summer schedule (2018), the airline has increased the frequency of flights on Madurai-singapore (from four a week to daily flights); Kochi-doha