Tata Group’s holding company Tata Sons may become the controlling stakeholder in the low cost airline, AirAsia India, as it looks to buy stakes held by airline’s chairman S Ramadorai and non-executive director R Venkataraman, The Times of India reported citing people directly aware of the matter.
Ramadorai, former Tata Consultancy Services CEO, owns 0.5 percent stake while Tata Trusts’ CEO Venkataraman owns 1.5 percent stake in the airline carrier service.
If the transaction goes through, Tata Sons will emerge as the largest shareholder with 51 percent stake while the remaining 49 percent will be held by AirAsia, the report said, adding that no deadline has been set for the transaction.
The share acquisition comes at a time when the Malaysian air carrier is plagued by rule-rigging allegations and senior management exits, the report said, adding that Tata Sons acquisition of shares is part of a clean-up and consolidation act, which will tighten the company’s grip over the operations of AirAsia India.
First Published: IST