homeaviation News

TPG, Etihad Airways show interest in bidding for Jet Airways

TPG, Etihad Airways show interest in bidding for Jet Airways

TPG, Etihad Airways show interest in bidding for Jet Airways
Profile image

By Ritu Singh  Mar 28, 2019 2:54:12 PM IST (Updated)

Abu-Dhabi based Etihad Airways has shown interest in bidding for Jet Airways, sources aware of the development told CNBC-TV18 on Thursday, adding that the UAE's second largest airline has already approached the SBI-led consortium regarding the same.

Recommended Articles

View All

Etihad may look at acquiring an additional 37 percent stake in the airline to take its stake to 49 percent, said the sources, who did not want to be named.
Etihad currently owns 24 percent in Jet Airways, however, once lenders take up a majority stake in the airline, Etihad’s stake will fall to around 12 percent.
Jet Airways chairman Naresh Goyal and his wife Anita Goyal stepped down from the board of the airline on March 25, giving in to pressure from lenders amid the growing debt crisis and the airlines' inability to pay its staff and lessors.
Apart from Etihad, American investment firm TPG has also shown interest in the debt-laden airline, said the sources. The company may bid with a partner fund or strategic player. It had last year shown interest in acquiring a stake in Jet Privilege.
NIIF or National Infrastructure Investment Fund, which was expected to pick up about 20 percent stake in the airline as per the initial resolution plan, may still be interested and could consider picking up a substantial stake in the airline along with a strategic player, the sources pointed.
The Tata Group, which had also expressed interest in the beleaguered airline earlier, has not yet approached lenders directly, the banking sources confirmed.
State Bank of India chairman Rajnish Kumar had earlier told CNBC-TV18 that the lenders will invite bids for Jet by April 9 and expected final bids to be made by April 30. He further said that a new investor should be in place by May 31.
Jet Airways has more than Rs 8,000 crore in debt and is looking for urgent liquidity infusion to pay its pilots, engineers and make payments to its lessors.
As per ICRA's report, the airline has large repayments worth Rs 1,700 crore due in March and further Rs 2,445 crore due in FY20 and Rs 2,168 crore due in FY21.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers