Friday, March 29, 2019

TPG, Etihad Airways show interest in bidding for Jet Airways

Abu-Dhabi based Etihad Airways has shown interest in bidding for Jet Airways, sources aware of the development told CNBC-TV18 on Thursday, adding that the UAE's second largest airline has already approached the SBI-led consortium regarding the same.

Etihad may look at acquiring an additional 37 percent stake in the airline to take its stake to 49 percent, said the sources, who did not want to be named.

Etihad currently owns 24 percent in Jet Airways, however, once lenders take up a majority stake in the airline, Etihad’s stake will fall to around 12 percent.

Jet Airways chairman Naresh Goyal and his wife Anita Goyal stepped down from the board of the airline on March 25, giving in to pressure from lenders amid the growing debt crisis and the airlines' inability to pay its staff and lessors.

Apart from Etihad, American investment firm TPG has also shown interest in the debt-laden airline, said the sources. The company may bid with a partner fund or strategic player. It had last year shown interest in acquiring a stake in Jet Privilege.

NIIF or National Infrastructure Investment Fund, which was expected to pick up about 20 percent stake in the airline as per the initial resolution plan, may still be interested and could consider picking up a substantial stake in the airline along with a strategic player, the sources pointed.

The Tata Group, which had also expressed interest in the beleaguered airline earlier, has not yet approached lenders directly, the banking sources confirmed.
28/03/19 Ritu Singh/CNBC TV18
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