Singapore Airlines in 'confidential' talks with Tata Group over potential Vistara, Air India merger

The rumours of the Air India and Vistara merger have been put to rest by the statement of Singapore Airlines with the statement confirming their ongoing discussion with Tata Group, read for more details.

Singapore Airlines in 'confidential' talks with Tata Group over potential Vistara, Air India merger

A merger of Vistara and Air India may be in a confidential discussion between Singapore Airlines and Tata Group. Before, the aforementioned airlines were rumoured to be merging, but the parties involved refuted this. This time, Singapore Airlines has released a formal statement that sheds light on the predicament. It should be emphasised that Tata SIA Airlines Limited, which runs the Indian full-service airline known as Vistara, is owned by Singapore Airlines Ltd (SIA), which has a 49 percent equity stake in the company. A 51 percent equity stake in Vistara belongs to the Tata Group. The SIA Group now has a stake in India's rapidly expanding aviation industry thanks to the formation of Vistara in 2013.

"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," said the Singapore airline in a statement on Thursday.

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"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 materialize, it would be subject to the relevant regulatory approvals, amongst other matters," it said.

"India has strong domestic and international traffic flows, which is expected to more than double over the next 10 years. This is an integral part of the SIA Group`s multi-hub strategy, allowing it to get access to important sources that complement its strong Singapore hub," said the Singapore airline.

The airline said that shareholders and potential investors are advised to exercise caution when dealing or trading in the securities of the Company.

"Shareholders and potential investors should consult their stockbrokers, bank managers, solicitors, or other professional advisers if they have any doubt about the actions they should take. 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 Ltd," it said.

With inputs from IANS

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