Tata Group, Singapore Airlines discuss Vistara and Air India integration
Singapore Airlines Limited holds a 49 per cent equity interest in Tata SIA Airlines Limited, which operates an Indian full-service airline known as Vistara
MUMBAI: Singapore Airlines on Thursday said it is in a "confidential discussion" with Tata Group for the potential integration of Vistara and Air India.
Tata Group recently acquired Air India from the government. Tata Group controls the majority 51 per cent stake in Vistara while 49 per cent of the share is controlled by Singapore Airlines.
"In line with its multi-hub strategy, SIA is currently in confidential discussions with Tata to explore a potential transaction in relation to the securities of Vistara and Air India Ltd, a subsidiary of Tata (the "Potential Transaction"). The discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India," Singapore Airlines Limited (SIA) said in a statement.
The discussions are ongoing and no definitive terms have been agreed upon between the parties. There is no certainty or assurance whatsoever that (a) any definitive agreement will be entered into or (b) the Potential Transaction will materialize or proceed to completion arising from these discussions. Even if a transaction were to materialize, it would be subject to the relevant regulatory approvals, amongst other matters, it said.
Shareholders and potential investors are advised to exercise caution when dealing or trading in the securities of the Company. Shareholders and potential investors should consult their stockbrokers, bank managers, solicitors or other professional advisers if they have any doubt about the actions they should take.
The Company will make the necessary announcements as appropriate or when there are any material developments regarding the Potential Transaction in compliance with the relevant provisions of the Listing Manual of the Singapore Exchange Securities Trading Limited, Singapore Airlines noted in the statement.
Singapore Airlines Limited holds a 49 per cent equity interest in Tata SIA Airlines Limited, which operates an Indian full-service airline known as Vistara, based in New Delhi. The balance 51 per cent equity interest in Vistara is held by the Tata Group.
The establishment of Vistara in 2013 gave the SIA Group a stake in India's fast-growing aviation sector. India has strong domestic and international traffic flows, which is expected to more than double over the next 10 years. This is an integral part of the SIA Group's multi-hub strategy, allowing it to get access to important sources that complement its strong Singapore hub, the statement released by Singapore Airlines noted.