Jet-Sahara deal airborne again

New Delhi: Jet Airways is all set to buy Air Sahara in a revised, out-of-court deal. The effective merger date will be announced in two weeks.
The two airlines would present their agreement before the arbitration panel on Wednesday. A formal announcement would be made thereafter.
The three-member arbitration panel, comprising British judge Lord Stein, retired Supreme Court judges Justice S P Bharucha and Justice Jeevan Reddy, told both the parties to talk and resolve differences.
As against the earlier valuation of Sahara at Rs 2,200 crore, Jet is said to have wrapped up the deal for anything between 1450-1850 crores.
Jet had already paid an advance of Rs 500 crore to Air Sahara as bank guarantee.
While there was no official confirmation from either side about the financial details of the deal, sources said that a creditor's deduction of over Rs 200 crore is not being accepted by Jet, which is the reason behind the drop in Air Sahara's enterprise value from about Rs 2,300 crore, worked out when the deal was first struck, to Rs 2,050 crore now.
11/04/07 CNN-IBN

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Categories: Air Sahara Apr 2007, Jet Airways Apr 2007