Jet to buy Air Sahara at less than $500 mn
Jet is not likely to pay Rs 275 crore toward 'creditors deduction' as per the earlier settlement
By PTI |
Mumbai: Nine months after calling it off, Jet Airways is understood to have struck a deal to revive the takeover of Air Sahara, but at a lower price than the $500 million offered in January last year.
The agreement, which was reached during the final arbitration hearings here, valued the deal at little over Rs 1,800 crore.
According to sources Jet, leader in the domestic aviation space, will not pay Rs 275 crore toward 'creditors deduction'.
Naresh Goyal-promoted Jet has already paid Rs 500 crore in lieu of shares pledged by Sahara last year. The remaining nearly Rs 1,365 crore would be paid through the bank account to complete the deal.
When contacted, a Sahara spokesperson declined to comment, saying the talks were on through the arbitration panel.
Goyal, emerging from the arbitration hearing, also declined to comment, saying "the matter is sub-judice".
Jet's counsel told reporters that the arbitration order was expected on Wednesday and did not divulge further details.
Jet Airways' Chairman Naresh Goyal, coming out of the arbitration hearing, declined to comment, saying "the matter is subjudice".
Jet's counsel told reporters the arbitration order was expected tomorrow but did not divulge details.
In January last year, India's largest private sector airline had signed a share-purchase agreement (SPA) to acquire 100 per cent equity stake in Air Sahara.
The agreement, which was reached during the final arbitration hearings here, valued the deal at little over Rs 1,800 crore.
According to sources Jet, leader in the domestic aviation space, will not pay Rs 275 crore toward 'creditors deduction'.
Naresh Goyal-promoted Jet has already paid Rs 500 crore in lieu of shares pledged by Sahara last year. The remaining nearly Rs 1,365 crore would be paid through the bank account to complete the deal.
When contacted, a Sahara spokesperson declined to comment, saying the talks were on through the arbitration panel.
Goyal, emerging from the arbitration hearing, also declined to comment, saying "the matter is sub-judice".
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Jet's counsel told reporters that the arbitration order was expected on Wednesday and did not divulge further details.
Jet Airways' Chairman Naresh Goyal, coming out of the arbitration hearing, declined to comment, saying "the matter is subjudice".
Jet's counsel told reporters the arbitration order was expected tomorrow but did not divulge details.
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Meanwhile, there are reports that valuation of Air Sahara could be around Rs 1,800 crore and Jet may offer to takeover the airline for that amount, which would include adjustment of Rs 500 crore already paid to the Lucknow-based carrier.In January last year, India's largest private sector airline had signed a share-purchase agreement (SPA) to acquire 100 per cent equity stake in Air Sahara.
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As part of the deal, Jet paid Rs 180 crore for revival of Air Sahara and Rs 500 crore for Air Sahara shares, besides depositing Rs 1,500 crore in an escrow account opened for the purpose. Start a SIP with as low as ₹500 with ET Money App!
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