Tata Group controls the majority 51 per cent stake in Vistara while 49 per cent of the share is controlled by Singapore Airlines.
Singapore Airlines announced that it and Tata Group were having a "confidential discussion" regarding the possibility of combining Vistara and Air India, on Thursday. Recently, the government sold Air India to the Tata Group.
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 materialise or proceed to completion arising from these discussions. Even if a transaction were to materialise, it would be subject to the relevant regulatory approvals, amongst other matters, it said.
Shareholders and prospective investors are urged to use caution when interacting with or trading in the Company's securities. If shareholders or prospective investors are unsure what to do, they should consult their stockbrokers, bank managers, attorneys, or other professional advisers.
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.
Strong domestic and international traffic flows exist in India, and over the next ten years, these flows are anticipated to more than double. According to a statement made public by Singapore Airlines, this is a crucial component of the SIA Group's multi-hub strategy because it gives it access to significant resources that complement its powerful Singapore hub.
(with inputs from ANI)
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