Friday, July 29, 2022

TruJet’s $25 Million Stake Purchase Deal Likely To Conclude In August

The life-saving multi-million-dollar cash infusion for India's struggling regional carrier TruJet could finally see the light of day in August, according to recent reports. The airline has had a rough few months lately, which involved grounding planes, deferring salaries, and lessors coming forward to repossess planes. The much-awaited stake purchase deal is necessary for TruJet to start operations again.

In May, Hyderabad-based TruJet got some hope of another chance at survival after WinAir (We Indian Nationals) Aviation Pvt Ltd announced acquiring a 79% equity stake in the airline in exchange for ₹2,00,00,00,000 (a little over $25 million).

The Time of India reports that WinAir's chairman and managing director, Samuel Timothy plans to conclude the deal in August and is sourcing a significant part of the amount from Aaryans Group.

WinAir is associated with the Aaryans Group of Companies, which are involved in multi-sector business, including green energy, infrastructure, steel, media and entertainment, hospitality and IT, real estate, and food & beverage, among others.

Timothy says that the management teams of TruJet, Winair, and Aaryans Group will meet for the first time on August 1st to discuss further course of action and that that money is likely to exchange hands soon after.

Timothy told TOI that the Aaryans Group has issued a cheque (he didn't reveal the amount) and that the remainder of the amount to seal the deal is also expected soon.

The deal between Winair and Aaryans Group is also likely to be concluded around the same time as the primary stake purchase deal of TruJet. Winair had initially announced that it would claim 79% shares of the airline after the transaction, but the latest report suggests that it could end up taking more than that.

29/07/22 Gaurav Joshi/Simple Flying

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