The board of Tata Sons is probably going to meet on Friday to discuss Jet Airways Takeover. This is about a proposition to assume control over the Naresh Goyal-controlled Jet Airways, which is searching for investors to hold over liquidity crunch that it has been saddled with. (See :Jet Airways Crisis)
In the mean time, Jet Airways shares hit a four-month high; takes off 105% from October low. The stock revived 30% to Rs 335 on BSE in the intra-day exchange, its most keen single day gain on reports of Tata Group is in talks with purchase a controlling stake in the destitute airline company.
Jet Airways had earlier said that the board of directors of the company had considered various cost-cutting measures, debt reduction and funding options, including infusion of capital, monetization of assets and sale of company’s stake in its Loyalty program. These measures also include carrying out a sale and subsequent leaseback of its finance leased aircraft.
Airline’s deputy chief executive and CFO Amit Agarwal not long ago had conceded that the organization was in talks with “different invested individuals” for fund infusion and also offering six of its Boeing 777 planes and a stake in its loyalty progarmme Jet Privilege.
While a representative of Tata Sons, which as of now runs two airlines – the full-service carrier Vistara in a JV with Singapore Airlines, and the low-cost carrier AirAsia India in JV with Air Asia of Malaysia, declined to remark on “hypothesis,” Jet did not react to PTI questions on the equivalent.
“We don’t remark on speculation,” a Tata Sons, which initially possessed the present national bearer Air India, representative said when requested affirmation.
Other than Goyal, who alongside his family claims 51 percent stake in the transporter, Gulf carrier Etihad Airways holds 24 percent stake in the destitute carrier which not long ago revealed Rs 12.61 billion misfortune for the September quarter against a benefit of Rs 710 million y-o-y, making it the third straight quarter of substantial misfortunes.
This had the airline also putting as many as six of its Boeing 777s on sale to part-fund liquidity.
Media reports propose that the parent organization of Vistara, Tata-Singapore Airlines, is seeing all-stock merger with Jet Airways as a feature of the Tata group’s intends to board Goyal’s jet Airways.
In an exchange filing, Jet Airways portrayed the media reports as theoretical.