The Tatas are learnt to be interested in acquiring the cash-strapped Jet Airways, which has been put up for sale by its Indian lenders.
In a bid to find a buyer at the earliest to mobilise an estimated ₹8,500 crore for revival, banks, led by the State Bank of India (SBI), on Thursday decided to invite expression of interest (EoI) from interested parties on April 6, 2019 and the Tatas are planning to submit a bid, people familiar with the development said. The last date for submission of bids is April 9. A Tata Sons spokesperson said, “We do not comment on market speculation.”
In November last, the Tatas, who run Vistara and AirAsia India in joint ventures, held preliminary discussions to invest in Jet Airways. Tata Group chairman N. Chandrasekaran even took the proposal to the Tata Sons board for approval. However, they withdrew because Jet’s promoter wanted to retain control over the airline, which was not acceptable to the Tatas.
In November last, the Tatas, who run Vistara and AirAsia India in joint ventures, held preliminary discussions to invest in Jet Airways. Tata Group chairman N. Chandrasekaran even took the proposal to the Tata Sons board for approval. However, they withdrew because Jet’s promoter wanted to retain control over the airline, which was not acceptable to the Tatas.
Earlier, it was estimated that they would invest about $1 billion to acquire a controlling stake in Jet, but now there has been a sharp erosion in value as the airline is on the brink. Analysts estimate Jet’s total liability at more than $2 billion, including bank and aircraft loans of ₹7,500 crore. Little is known about how much debt had been accumulated in last six months.
“The last six months has been damaging for Jet Airways. The delay has eaten away the company. Six months back, the valuation could have been better. Now, it is up to the banks on how much haircut they can accept,” said Ansuman Deb, aviation analyst, ICICI Securities.
It is understood that Singapore Airlines, which holds 49% stake in Tata SIA Airlines that runs Vistara, is assisting in the bidding process and may pick up a stake.
05/04/19 Lalatendu Mishra/The Hindu
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In a bid to find a buyer at the earliest to mobilise an estimated ₹8,500 crore for revival, banks, led by the State Bank of India (SBI), on Thursday decided to invite expression of interest (EoI) from interested parties on April 6, 2019 and the Tatas are planning to submit a bid, people familiar with the development said. The last date for submission of bids is April 9. A Tata Sons spokesperson said, “We do not comment on market speculation.”
In November last, the Tatas, who run Vistara and AirAsia India in joint ventures, held preliminary discussions to invest in Jet Airways. Tata Group chairman N. Chandrasekaran even took the proposal to the Tata Sons board for approval. However, they withdrew because Jet’s promoter wanted to retain control over the airline, which was not acceptable to the Tatas.
In November last, the Tatas, who run Vistara and AirAsia India in joint ventures, held preliminary discussions to invest in Jet Airways. Tata Group chairman N. Chandrasekaran even took the proposal to the Tata Sons board for approval. However, they withdrew because Jet’s promoter wanted to retain control over the airline, which was not acceptable to the Tatas.
Earlier, it was estimated that they would invest about $1 billion to acquire a controlling stake in Jet, but now there has been a sharp erosion in value as the airline is on the brink. Analysts estimate Jet’s total liability at more than $2 billion, including bank and aircraft loans of ₹7,500 crore. Little is known about how much debt had been accumulated in last six months.
“The last six months has been damaging for Jet Airways. The delay has eaten away the company. Six months back, the valuation could have been better. Now, it is up to the banks on how much haircut they can accept,” said Ansuman Deb, aviation analyst, ICICI Securities.
It is understood that Singapore Airlines, which holds 49% stake in Tata SIA Airlines that runs Vistara, is assisting in the bidding process and may pick up a stake.
05/04/19 Lalatendu Mishra/The Hindu
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