SIA to seek tougher terms for any fresh Air India funding
It will seek greater influence over management and stronger governance rights
Singapore Airlines (SIA), supported by state investor Temasek, is anticipated to seek enhanced influence over management and improved governance rights before authorizing a capital contribution to Air India, according to two individuals familiar with the matter. The proposed stipulations, which would be negotiated with Air India's majority owner Tata Sons, might encompass increased board voting power and requisites for the Indian carrier to diminish its losses, the individuals disclosed.
Temasek, SIA's primary shareholder, would not provide the funds itself nor intervene in Air India's decisions concerning the Indian airline, they added. The dialogue about conditions follows Reuters' reporting last month that Air India was seeking approximately US$1.5 billion in additional equity from its owners. Two other sources stated that Tata had sanctioned a US$1.1 billion investment, representing its proportional share.
SIA owns the remaining 25.1 percent stake. All four individuals declined to be identified as the information is not yet disclosed.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
