Tata Sons to Acquire 32.67% Stakes of AirAsia India

On Tuesday, Malaysian budget airline AirAsia Group Berhad made a statement that it plans to sell 32.67% of its stake of its Indian operations to Tata Sons for about $37.7 million (Rs. 276.6 crore)

AirAsia India is a joint venture between Tata Sons and Malaysian airline AirAsia. According to the officials of AirAsia, the company will now focus on its recovery after AirAsia suffered huge financial loss amid the COVID-19 pandemic.

“This transaction is in line with our initiatives towards reducing cash utilization for the Group and will allow us to use cash to grow market share in our core markets in ASEAN, particularly in Malaysia, Thailand, Indonesia, and the Philippines as well as for our future expansion into Cambodia, Myanmar and Vietnam,” said President of AirAsia Group, Bo Lingam

“The Directors having considered the rationale for the transaction and after careful consideration, are of the opinion unanimously that the transaction is in the best interest of AirAsia and its shareholders,” it said.

This announcement comes just after 2 months of AirAsia shutting down its operation in Japan.