Tata Sons Limited has decided to increase its stake in budget carrier AirAsia India to 49%. Tata’s along with AirAsia India directors S Ramadorai (chairman AirAsia India board) and R Venkataramanan will buy out the 9.94% stake held by Arun Bhatia’s Telestra Tradeplace in the company.
“Tata Sons Limited has entered into an agreement with Air Asia (India) Limited, Telestra Tradeplace Pvt. Ltd. and two of the directors of the Company, being S Ramadorai (Chairman) and R Venkataramanan, under which Tata Sons proposes to increase its stake in the Company to 49% from its existing stake of 41.06%, by acquiring 7.94% equity stake from Telestra,” the Tata Group said in a statement.
“S. Ramadorai and R. Venkataramanan, in their individual capacity, propose to acquire 0.5% and 1.5% shareholding respectively of Telestra’s remaining 2% equity stake in the Company. AirAsia Investment Ltd. will continue to hold its 49% stake in the Company,” it said.
The agreement was entered into on March 14 and the transaction is proposed to be completed in April subject to completion of the relevant approvals and processes.