Three investors line up for equity stake in GoAir

New Delhi: GoAir is believed to be mulling over bringing in a new equity partner from among three aspirants, including a leading Indian corporate and a global venture capitalist - a move that would help the Wadias- promoted airline to expand its fleet to 40 aircraft by 2012.
Ahead of advancing the negotiations, the budget carrier has been valued at up to Rs 1,600 crore (350-400 million dollars) by a leading international consultancy firm.
Asked about the new equity partner and the stage of negotiations, a company spokesperson declined to comment, saying: "As a policy, GoAir does not comment on market speculations."
With the recent round of consolidation in aviation space, such as Jet Airways-Air Sahara and Kingfisher-Deccan deals, GoAir is emerging as an attractive investment target and has received offers from an international venture capital firm, an Indian corporate and another domestic financial investor, people close to the development said.
According to a person familiar with the valuation process, value was arrived after taking into consideration the company's business plans for the next 4-5 years, which includes a major fleet expansion plan.
12/12/07 PTI/Economic Times

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Categories: Foreign Dec 2007, GoAir Dec 2007, New Dec 2007