Lenders are laying the ground for a new owner in Jet Airways as they insist on an undertaking from the shareholders that will trim founder-chairman Naresh Goyal's stake to below 10% while Abu Dhabi-based Etihad will have to agree to exit from the ailing airline.
Led by State Bank of India (SBI), lenders are planning to call for open bids to sell Jet Airways after obtaining written agreements from Goyal and Etihad. Goyal, who currently owns 51% of Jet Airways, will have to bring down his stake to 9% and have no voting rights. Etihad, whose holding is at 24%, will have to agree to sell its entire stake if it does not bring in new capital.
The Tata Group may be back in the fray for acquiring Jet Airways after such conditions are met. Preliminary talks for a deal were held late last year but the Group had subsequently withdrawn as there was no firm indication that Goyal would step down.
"We have a two-stage plan and are insisting on an agreement from both the shareholders. Goyal has to cut his stake to 9% while Etihad, which has declined from making additional investments, will have to agree to exit. This will ease the path for us to rope in a new investor," a senior bank official said.
Lenders will be subscribing to a 15-year-old zero coupon non-convertible debenture (NCD), issued by Jet Airways, to provide funding of Rs 800-1,000 crore in the interim period to keep the floundering airline afloat. Banks expect to rope in a new investor within four weeks, the source added.
24/03/19 Manju AB/DNA
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Led by State Bank of India (SBI), lenders are planning to call for open bids to sell Jet Airways after obtaining written agreements from Goyal and Etihad. Goyal, who currently owns 51% of Jet Airways, will have to bring down his stake to 9% and have no voting rights. Etihad, whose holding is at 24%, will have to agree to sell its entire stake if it does not bring in new capital.
The Tata Group may be back in the fray for acquiring Jet Airways after such conditions are met. Preliminary talks for a deal were held late last year but the Group had subsequently withdrawn as there was no firm indication that Goyal would step down.
"We have a two-stage plan and are insisting on an agreement from both the shareholders. Goyal has to cut his stake to 9% while Etihad, which has declined from making additional investments, will have to agree to exit. This will ease the path for us to rope in a new investor," a senior bank official said.
Lenders will be subscribing to a 15-year-old zero coupon non-convertible debenture (NCD), issued by Jet Airways, to provide funding of Rs 800-1,000 crore in the interim period to keep the floundering airline afloat. Banks expect to rope in a new investor within four weeks, the source added.
24/03/19 Manju AB/DNA
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