The widely anticipated merger of Indian airline Vistara into Air India will see Singapore Airlines (SIA) getting a 25.1 per cent stake in the enlarged entity for an additional investment of $360 million.
The Tata Group will remain the bigger partner in Air India postmerger, with a 74.9 per cent stake.
Tata currently holds 51 per cent of Vistara, while SIA has 49 per cent.
The merger is expected to be completed in March 2024.
SIA's capital injection into the new Air India group could rise by another 50.2 billion rupees (S$880 million) if the Indian carrier decides to tap both its shareholders for additional funds for restructuring and expansion.
The exact amount of additional investment by each partner will be calibrated to maintain the 25.1 per cent-74.9 per cent respective stakeholdings of the two parties.
SIA will fund its investment from internal sources, which include $17.5 billion in cash and bank balances, and $2.2 billion in committed lines of credit.
SIA and Tata together initially invested about $100 million to start up the Vistara venture in 2013.
Diese Geschichte stammt aus der November 30, 2022-Ausgabe von The Straits Times.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der November 30, 2022-Ausgabe von The Straits Times.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
LAXON WINS, BUT THE EQUINE VERSION
Unlike his famous namesake, Darci Brahma 3YO just tasted his first success in Malaysia
STARS ALIGN FOR RIYADH
Singapore mountain biker takes historic World Cup silver after rivals falter
EMBRACE CHANGE AND FUTURE: KLOPP
In his farewell speech at Anfield, he urges fans to back Slot as he becomes one of them
MAJOR MOMENT EARNED
Schauffele holds his nerve to win in Valhalla and end 2-year title drought
MOMENT OF TRUTH FOR NEW APPROACH
Floorball men can show at world qualifiers results of overhauled training methods
NO GUINEAS, BUT GREATER GOOD FOR GREATHAM BOY
Fitzsimmons vindicated in decision to steer 3YO from G2 feature towards softer option
S'pore firms continue to expand in China, driven by long-term potential
EnterpriseSG has helped businesses grow there through 300 projects over past 2 years
Japan's inexperienced investors fall for scams 'like babies'
As Japan's stock market booms, something else is also on the rise in the nation: investment scams.
CHIJ celebrates 170 years of teaching generations of girls
Second-oldest girls' school holds big bash for staff and students, past and present
Test kits fly off the shelves as Covid-19 cases spike
Pharmacies report surge in demand for kits, masks as S'pore faces new infection wave