Tuesday, April 09, 2019

Six airlines are interested in buying Jet Airways

Global private equity firm TPG Capital and international airline such as Lufthansa are among six entities who are believed to have shown interest in the "expression of interest" stake sale process of the debt-ridden Jet Airways, sources said.

The development comes as lenders of the debt-ridden airline invited EoI for stake sale in the airline to recover their dues worth Rs 8,000 crore.

Sources said that TPG Capital, private equity firm KKR, Blackstone, Lufthansa, Singapore Airlines and Delta-Air France-KLM are among the companies approached by the lenders.
When contacted, a Tata Group spokesperson, said: "We don't comment on market speculation."

As per the document issued by the State Bank of India (SBI), the lead lender in the consortium, it offered stake from 31.2 to 75 per cent of the company on a fully diluted basis.

However, it was not known whether ex-Chairman Naresh Goyal or major equity owner Etihad Airways would be selling their stake on a pro-rata basis.
The airline owes Rs 8,000 crore to lenders, led by the SBI. On March 25, Goyal had stepped down from the board of the airline and ceded majority control to the SBI-led consortium.

The consortium of banks then appointed SBI Caps to take out the EoI and conduct the process of their stake sale in the airline.

"The lenders, pursuant to the guidelines issued by the Reserve Bank of India, are in the process of formulation of a resolution plan for resolving stress in the company, inter alia, involving change in control and management of the company," the EOI document said.
The purpose of the EoI is to provide information about the company to enable interested parties to make assessment about the proposal prior to the submission of their bids.

The time period for submission of EoI is till 6 p.m. on April 10.
09/04/19 IANS/Business Insider
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