Jet’s lips are zipped

Even as its acquisition of Air Sahara has fallen apart, Jet Airways has let the media to do the talking to its investors. The company is curiously silent on the latest developments related to its $444-m acquisition of Air Sahara.

The airline, which was known for its secretive nature, particularly regarding its financials before it was listed, seems to continue keeping cards close to its chest even after going public over a year ago. The stock exchanges were not informed of details on the parting of ways of the two airlines that were supposed to merge.

Market sources say it is surprising that Jet Airways has not issued an official statement, despite the huge coverage that the falling-through of the deal has received over the past few days. Notwithstanding Jet’s silence on the issue, its stock, which was hammered on the bourses in the past six months, has appreciated since Monday when the news of the break-up first came in.

Questions are also being raised in corporate circles about how the deal which was ratified by the Jet Airways board could be undone without a board meeting. Jet Airways sources said a board meeting will be convened soon. Jet Airways promoter Naresh Goyal owns 80% of the equity in the company.

As a matter of of corporate governance, listed companies make it a point to immediately clarify their stand on all media reports which are price-sensitive in nature.

According to the Bombay Stock Exchange (BSE), Jet Airways may not have violated listing norms, as the company has been informing the exchange about developments in the past. However, the BSE website had no communication on Jet-Sahara deal being called off, at least till late evening.

Jet Airways, however, on Tuesday had clarified on the status of the Share Purchase Agreement between the company and Sahara Airlines, saying that the former was still awaiting all the regulatory approvals and the fulfilment of all conditions precedent. On Thursday, it closed marginally down on the BSE at Rs 704.34. This is despite hitting a high of Rs 770 in intra-day trading.