Air India bidding to be on enterprise value, deadline extended till Dec 14

Minister says says bidding will be completed by end of December, will attract parties who till now had constructed the debt amount as a minimum threshold bid amount.

The government has changed a bidding parameter for state-owned airline Air India, allowing potential buyers to quote enterprise value instead of equity value. Simultaneously, the deadline for submitting bids has been extended to December 14 from October 30.

The decisions were taken by Home Minister Amit Shah-led group of ministers on Thursday.

Civil Aviation Minister Hardeep Singh Puri said this would entice bidders who till now had constructed the debt amount as a minimum threshold bid amount. The Tata group, which operates two airlines Vistara and AirAsia India, is a favourite for acquiring the national carrier.

“We expect to complete the bidding process