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Jet Airways seeks stake sale as airline hit by surging fuel prices, weaker rupee and competition: Report

Jet Airways seeks stake sale as airline hit by surging fuel prices, weaker rupee and competition: Report

Jet Airways seeks stake sale as airline hit by surging fuel prices, weaker rupee and competition: Report
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By CNBC-TV18 Aug 3, 2018 3:28:31 PM IST (Updated)

Fundraising is crucial for the airline as the airline faces a surge in fuel prices, weaker rupee, tough competition, among other challenges.

Aviation major Jet Airways has approached investment bankers as it is looking to sell a stake, reported Mint.

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“Jet Airways is looking to raise immediate cash and the transaction may include Jet Airways founder Naresh Goyal offloading a part of the promoter’s stake in the company,” sources told Mint on Thursday.

Goyal owns a majority stake of 51 percent in the airline while Etihad owns 24 percent stake.

Fundraising is crucial for the airline as the airline faces a surge in fuel prices, weaker rupee, tough competition, among other challenges.

The talks had begun few months ago and the promoters of the airlines were believed to be looking for a significant premium to the then market price, said the sources, adding that "things are expected to be slightly different as the urgency to raise cash is far greater now".

Etihad, according to the report, had previously sought to purchase a controlling stake in the airline but the founder had declined the offer.

However, the company has denied the news and said the airline was not looking to sell any stake.
(This report has been updated with Jet Airways' comments)
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