Tata Sons to acquire AirAsia’s stake in airline JV

January 8, 2021

Tata Sons Private Limited has signed an agreement with Malaysian budget carrier AirAsia Group Bhd to increase its stake in their India JV. AirAsia has agreed to sell a 32.67 per cent stake in the JV for $37.66 million (about Rs 2.77 billion). The Malaysian airline previously owned 49 per cent stake in AirAsia (India) Limited, while Tata Sons controlled 51 per cent. AirAsia will also have an option to divest its remaining 16.33 per cent in the Indian venture to Tata Sons for $18.83 million. It can sell the stake in two stages in 2022. Similarly, Tata Sons will get an option to acquire AirAsia’s remaining stake at any time after the current transaction is completed. The deadline to close the deal is March 31, 2021. AirAsia has also agreed to waive the unpaid brand licence fees for its India JV due to the Covid-19 pandemic.