BENGALURU: Indian conglomerate Tata Sons is in talks to buy out AirAsia Group Bhd’s stake in their airline joint venture in India at a steep discount, the Business Standard newspaper reported on Thursday, citing banking sources.
Tata Sons will likely tie up with other financial investors to acquire AirAsia’s 49% stake in the venture, according to the newspaper.
Malaysian budget carrier AirAsia said earlier in the day that it was in talks to raise more than 1 billion ringgit ($234.52 million) in funds, a day after its auditor cast doubt on its ability to continue as a going concern.
Tata Sons declined to comment. AirAsia did not immediately respond to a request for comment.
AirAsia, led by colourful chief executive Tony Fernandes, pioneered low-cost air travel across Asia
But on Monday the debt-laden Malaysian airline reported a record quarterly loss of 803 million ringgit ($187 million) for the first three months of the year, after being forced to ground its fleet due to the virus.
Auditor Ernst & Young said Tuesday that global travel restrictions had dented AirAsia’s financial performance, with liabilities exceeding assets by 1.84 billion ringgit.
in the early 2000s at a time of growing demand from a fast-emerging middle class.
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