Monday, March 25, 2019

Naresh Goyal can buy back Jet Airways stake, says SBI's Rajnish Kumar

Rajnish Kumar, chairman, State Bank of India, on Monday said that promoter Naresh Goyal has the option to buy back his stake in Jet Airways in the future.

Kumar also said they expect to get a new investor for debt-laden airways by May 31.

"June is too late. My expectation is 31st May. There will be an expression of interest which will be given by April 9 and binding bid by April 30," Kumar told CNBC-TV18.

The lenders of Jet Airways has agreed to put in Rs 1,500 crore immediate funding by acquiring 51 percent stake in the company through issue of Rs 11.4 crore fresh shares.

As a result, the stake of promoter Naresh Goyal will come down to 25 percent from 50 percent, while Etihad Airways, which had a 24 percent stake in the carrier, came down to 12 percent.

Jet Airways founder and chairman Naresh Goyal and his wife Anita Goyal will step down from the board of the ailing airline following the reduction in their stake to 25 percent as per the resolution plan formulated by SBI-led domestic lenders.

According to Kumar, the new investor could be a financial investor or an existing airline. "Nobody is barred from bidding or taking over the airline as per the rule," he said.
25/03/19 Latha Venkatesh/Surabhi Upadhyay/Ritu Singh/CNBC TV18
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