New Delhi: The National Company Law Tribunal (NCLT) on Thursday approved the merger of Air India and Vistara, paving the way for the creation of one of the world's largest airline groups.
After the merger, which was announced in November 2022, Singapore Airlines will hold 25.1 per cent stake in Air India. Vistara is a joint venture between Singapore Airlines and the Tata Group.
In a 31-page order, the Chandigarh bench of the NCLT approved the "composite scheme of arrangement" involving Talese, Air India and Vistara. All are part of the Tata Group.Air India expects the merger to be completed by the end of this year.
A two-member bench of the Chandigarh bench of NCLT observed that the plan has already received necessary approvals from the shareholders and lenders of both the airline companies.
Additionally, it has also received applicable approvals including from fair trade regulator Competition Commission of India (CCI) and the Directorate General of Civil Aviation (DGCA). Furthermore, "no standing objection" has been raised by the Income Tax Department or any other interested party.
"Accordingly, the 'composite scheme of arrangement' between the petitioner companies and their respective shareholders under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 is approved," the NCLT order said.,
It said the approved plan would be binding on the petitioner companies and their respective shareholders.
"Upon receipt of necessary approvals including necessary FDI approval/security clearance under the relevant CAR (Civil Aviation Regulations) issued by DGCA/Completion of merger and related formalities, the transferor companies (Vistara) will be dissolved without going through the process of winding up. MCA/any other authority within a period of nine months from the date of this order,” it said.
The order also states that the companies shall ensure foreign direct investment (FDI) approval by Singapore Airlines (a shareholder of Vistara) and necessary security clearance under relevant CARs from DGCA/MoCA within a time limit of nine months from the date of this order. Will do.
In March this year, Singapore's competition regulator CCCS had given conditional approval to the proposed merger.In September 2023, the deal received approval from CCI, subject to certain conditions.
Tata Group took over the reins of loss-making Air India in January 2022.
After the merger, which was announced in November 2022, Singapore Airlines will hold 25.1 per cent stake in Air India. Vistara is a joint venture between Singapore Airlines and the Tata Group.
In a 31-page order, the Chandigarh bench of the NCLT approved the "composite scheme of arrangement" involving Talese, Air India and Vistara. All are part of the Tata Group.Air India expects the merger to be completed by the end of this year.
A two-member bench of the Chandigarh bench of NCLT observed that the plan has already received necessary approvals from the shareholders and lenders of both the airline companies.
Additionally, it has also received applicable approvals including from fair trade regulator Competition Commission of India (CCI) and the Directorate General of Civil Aviation (DGCA). Furthermore, "no standing objection" has been raised by the Income Tax Department or any other interested party.
"Accordingly, the 'composite scheme of arrangement' between the petitioner companies and their respective shareholders under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 is approved," the NCLT order said.,
It said the approved plan would be binding on the petitioner companies and their respective shareholders.
"Upon receipt of necessary approvals including necessary FDI approval/security clearance under the relevant CAR (Civil Aviation Regulations) issued by DGCA/Completion of merger and related formalities, the transferor companies (Vistara) will be dissolved without going through the process of winding up. MCA/any other authority within a period of nine months from the date of this order,” it said.
The order also states that the companies shall ensure foreign direct investment (FDI) approval by Singapore Airlines (a shareholder of Vistara) and necessary security clearance under relevant CARs from DGCA/MoCA within a time limit of nine months from the date of this order. Will do.
In March this year, Singapore's competition regulator CCCS had given conditional approval to the proposed merger.In September 2023, the deal received approval from CCI, subject to certain conditions.
Tata Group took over the reins of loss-making Air India in January 2022.
