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Deals - Asia

Tata Sons in talks to buy out AirAsia India stake at steep discount: report

FILE PHOTO: An AirAsia plane is seen parked on the tarmac at Kuala Lumpur International Airport 2 (KLIA2) in Sepang, Malaysia December 13, 2017. REUTERS/Lai Seng Sin

BENGALURU (Reuters) - Indian conglomerate Tata Sons is in talks to buy out AirAsia Group Bhd's AIRA.KL 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.

Reporting by Anuron Kumar Mitra in Bengaluru; Editing by Anil D’Silva

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