Jet to seal stake sale in 2-3 weeks

Bangalore: Full-service carrier Jet Airways is expected to close talks with Indian and foreign private equity firms and financial institutions for offloading up to 10% of the promoters' stake in 2-3 weeks’ time.
A senior executive said that the airline had already started discussions with some firms to raise fund from the stake sale.
The proceeds will be deployed as the promoters' contribution to Jet’s planned Rs 1,600 crore ($400 million) rights issue.
“We will finalise the stake sale of up to 10% in 2-3 weeks,” said the executive.
After dilution of promoters' share from 80% to 70%, the company will come out with a rights issue in the first quarter of 2008-09.
Jet has planned offerings of one rights and one equity issue to bring down its debt-equity ratio, which is currently very high at 7:1.
17/03/08 Praveena Sharma/Daily News & Analysis

To Read the News in full at Source, Click the Headline

Categories: Jet Airways Mar 2008