Monday, November 05, 2018

Tatas keen to buy out Naresh Goyal, merge Jet Airways with Vistara

The promoter of cash-strapped Jet Airways Naresh Goyal has been reportedly approaching top corporate houses, including the Tata, for a possible equity infusion.

Goyal recently met Tata Sons chairman N Chandrsekaran to discuss the possibility of a deal, people familiar with the matter told CNBC-TV18. After the initial meeting, a top Tata team went to the drawing board to discuss if there is merit in a deal, they said, adding that the group met the Jet management for a second round of discussions. They did not want to be named

“The meeting was largely to discuss what terms both parties, especially the Tata Group wanted, if they were to take the conversations forward,” said one of the persons familiar to the discussions. “At the stage, the conversations are at a very exploratory stage and are being steered more by Jet airways than the Tatas,” he added.

When contacted a Tata group spokesperson said, “We do not comment on speculation.” A Jet Airways spokesperson responded to CNBC-TV18 query saying, “Your information on the above is totally speculative.” Etihad was unavailable for comment for this article.
The salt-to-software Tata Group is keen on buying out the promoters, Naresh Goyal and family, and the foreign equity partner, Etihad’s stake in Jet Airways. Currently, Jet Airways promoters hold 51 percent stake in the carrier and Etihad holds 24 percent.
The salt-to-software Tata Group is keen on buying out the promoters, Naresh Goyal and family, and the foreign equity partner, Etihad’s stake in Jet Airways. Currently, Jet Airways promoters hold 51 percent stake in the carrier and Etihad holds 24 percent.
Further, two independent sources familiar with the deal said that if the deal would go through, Tata Group may look at merging Vistara with Jet Airways. “Tata Group already has two airlines. If it were to acquire another airline it would want controlling stake and merge with Vistara,” said the source.
05/11/18 Kritika Saxena/CNBC TV18

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