Singapore Airliines says in discussions with Tatas over integration of Vistara and Air India

New Delhi, October 13, 2022

Singapore Airlines (SIA) today said it was in confidential discussions with the Tatas seeking to deepen their existing partnership and which might include a "potential integration of Vistara and Air India".

"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," the airline said in a statement.

"The discussions are on-going 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.

Singapore Airlines Limited holds a 49% equity interest in Tata SIA Airlines Limited, which operates the full-service airline Vistara. The balance 51 per cent equity interest in Vistara is held by the Tata Group, which now also owns Air India after making the winning bid for it when the Indian government decided to sell its stake in the national carrier.

The statement noted that the establishment of Vistara in 2013 gave the SIA Group a stake in India's fast-growing aviation sector.

SIA said India has strong domestic and international traffic flows, which are 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, the statement said.

The airline advised shareholders and potential investors 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," the statement added.

NNN