Singapore Airlines has dismissed a media report suggesting it may increase its existing 25.1% stake in Air India, obtained through Tata Group’s Vistara merger.
What Happened? The report by Mint indicated that the airline desired to gradually enhance its stake in the Indian carrier to around 40%.
However, Singapore Airlines responded to Reuters stating that Mint’s article published on June 16, 2023, was incorrect. The airline reaffirmed that there is no change from its position declared in November 2022.
The media report had cited unnamed sources, claiming that initial talks had taken place between Singapore Airlines and Tata Group about a possible increase in stake at the request of a Singapore-based airline.
Air India, however, has yet to comment on this matter.
Get all the latest Share Market trends and news to set you up for the week ahead.
In 2022, plans were announced to merge Vistara with Air India, awarding Singapore Airlines (SIA) a 25.1% stake in the unified entity upon an investment of $267 million (₹2,192 crore). Vistara, currently a joint venture with a 51:49 ratio between the Tata Group and SIA, will no longer exist after March 2024.
Singapore Airlines has consistently desired a partnership with Air India, according to an anonymous executive speaking to Mint. As a result, their plan to increase their stake as financial conditions improve seems to be a logical progression, the executive further explained.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.