Singapore Airlines (SIA) has announced that it is in “confidential discussions” with Indian multinational conglomerate Tata to explore a potential transaction relating to Indian airlines Vistara and Air India.
Vistara is a Tata-SIA joint venture, with SIA holding a 49% stake and Tata a 51% stake, while Air India is a Tata subsidiary.
SIA says that the discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India.
However, the airline clarified that discussions are still on-going, and no definitive terms have been agreed upon between the two sides.
SIA also added there is no certainty or assurance whatsoever that any definitive agreement will be entered into or that the potential transaction will materialize or proceed to completion arising from these discussions.
Furthermore, even if a transaction were to materialize, it would be subject to the relevant regulatory approvals, amongst other matters.
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SIA assured that will make the necessary announcements as appropriate, or when there are any material developments regarding the potential transaction
Shares of SIA closed flat on Oct 13 at $5.03.
