Air India-Vistara NCLT gives nod for Vistara-Air India merger
Chandigarh/IBNS: The National Company Law Tribunal (NCLT), a quasi-judicial body in India that adjudicates issues relating to Indian companies, at Chandigarh has given its nod for a merger between two airline companies -- Air India and Vistara.
The NCLT, in a ruling passed on Thursday (June 6), approved a composite scheme of arrangement proposed by Talace Private Limited (holding company of Air India), Tata Sia Airlines Limited (a joint venture between Tata Sons Private Limited and Singapore Airlines Limited, which operates Vistara airlines) and Air India Limited (collectively referred to as petitioner companies), reports Bar and Bench.
The NCLT bench of judicial member Harlam Singh Thakur and technical member LN Gupta found that there was no hurdle to granting sanction for the merger scheme, according to reports.
The NCLT, in this regard, noted that the proposed merger had been approved by the concerned shareholders and creditors and that no serious objection had been raised by any regulatory authority, reports said.
The tribunal observed that the petitioner companies had served all necessary notices to relevant statutory authorities including the Ministry of Civil Aviation (MoCA) and the Directorate General of Civil Aviation (DGCA), as reported by Bar and Bench.
According to reports, the MCA had informed that it had no objection to the proposed merger, provided that foreign direct investment (FDI) approval is secured by Singapore Airlines (a shareholder of Vistara Airlines), apart from necessary security clearances required under Civil Aviation Regulations (CARs) issued by the DGCA, the statutory body of the Indian Government to regulate civil aviation in the country.
The NCLT, in line with the MCA's suggestion, has given the petitioner-companies nine months of time to complete the process of merger and associated formalities, according to reports.
The tribunal, additionally, noted that fair trade regulator, the Competition Commission of India (CCI) has also granted its nod of approval.
As per a synopsis submitted to the NCLT, Tata Sons is slated to have a 73.38 percent stake in the merged entity while Singapore Airlines will have a 25.1 percent stake, and the remaining 1.52 per cent of shares is to be held by SBICAP Trustee Company Limited on behalf of the Air India Employee Settlement Trust, reports Bar and Bench.
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