A day after CNBC-TV18 reported billionaire Anil Agarwal's intention to acquire stake in now defunct Jet Airways, the businessman has made it clear he doesn't intend to pursue the deal.
In a statement, Agarwal said, "The EOI for Jet Airways by Volcan was exploratory in nature. On further evaluation and considering other priorities, we intend to not pursue this further."
On August 11, 2019, CNBC-TV18 reported Agarwal's Volcan Investments had emerged as one of the contenders to buy stake in Jet. The deadline to submit Expressions of Interest to acquire stake in the airline ended on Saturday evening.
Anil Agarwal and his family are the key stakeholders of Volcan Investments.
The other two bidders are both foreign funds, sources added. Panama-based investment company, Avantulo Group, and Russian Fund Treasury RA Creator are the two others who have submitted an Expression of Interest for Jet Airways, sources aware of the deal talks told CNBC-TV18.
Meanwhile, Etihad Airways declined to lodge an expression of interest to reinvest in India’s Jet Airways because of unresolved issues concerning Jet’s liabilities. An Etihad Airways spokesperson, in a statement to CNBC-TV18 said, "Earlier this year, Etihad presented a conditional expression of interest to reinvest in Jet as a minority stakeholder, with an agreed partner, but unfortunately this did not materialise. Etihad remained engaged in the process, but despite the endeavours of everyone involved there remained very significant issues relating to Jet’s previous liabilities. Regrettably, in these circumstances, it was neither feasible for nor responsible of Etihad to reinvest in Jet at this time."
Jet Airways was admitted for insolvency proceedings on June 20 by the Mumbai bench of NCLT, and Grant Thornton's Ashish Chhawchharia has been appointed the Resolution Professional for the airline. Jet Airways is facing claims of Rs 24,887 crores from various creditors.
"Volcan Investment, investment company for Anil Agarwal, in an exploratory move, has sought an EoI for Jet Airways, to understand the business scenario for the company and the industry. This EOI is in no way linked to Vedanta,"the company said in a statement.