Andrzej Jeziorski/SINGAPORE
The Indian Government has formally requested technical bids from shortlisted potential investors in Air India and Indian Airlines, ahead of the long-awaited partial privatisation.
Shortlisted parties have been handed "bid packs" including a request for proposals and an initial draft shareholders' agreement. The government has also requested details of bidding consortia, and detailed financial information on bidding partners.
The technical bids, including business plans, are due in by 9 February, with price bids and final technical proposals to follow after due diligence. The government is due to make a final decision by June.
Expressions of interest in the privatisation were submitted in November and shortlists were finalised in December. The government said it had rejected three potential bidders, including one from the pilots, for Air India and two for Indian Airlines.
The government is to sell 60% of Air India and 51% of Indian Airlines. Strategic partners will get up to 40% of Air India with foreign concerns entitled to bid for up to 26%, with another 10% going to domestic institutions and 10% to employees.
Foreign companies are not allowed to bid for Indian Airlines, where up to 26% will be offered to strategic partners and 25% to financial institutions, employees and the public. Indian Airlines' strategic partners cannot be more than 40% foreign-owned.
Among those interested in bidding for a stake in Air India is the Tata Group with partner Singapore Airlines. Air France, with partners Delta Air Lines, the SAirGroup and Emirates, have also expressed interest in the privatisation, although they have not yet named an Indian bidding partner. The Hinduja Group is also interested as is Laxmi Niwas Mittal, an Indian-born steel magnate, leading a bidding consortium through its London-based company Ispat International. British Airways and Qantas are reported to be advising on this bid and Kotak Mahindren is the local partner.
Hinduja Group has also said it is interested in the Indian Airlines privatisation, as is electronics company Videocon International.
Source: Flight International
