airliner Jet Airways is looking to revive its deal with
Air Sahara at a lower valuation, according to sources.
The deal, which was originally valued at Rs2,200 crore,
has been struck in the region of Rs1,850 crore, reports
new deal is likely to include creditors'' balance of Rs350
crore. The new deal includes creditors'' deduction of Rs350
crore. According to hearsay, the airline is expected pay
the remaining amount of Rs1,365-Rs1375 crore for Air Sahara.
Jet has already paid Rs500 crore as bank guarantee.
deal may take shape over a period of two to three months.
The Indian air carrier was in talks with various new players,
including a private equity player.
the news of the takeover of Air Sahara by Jet Airways
is yet not official, in all probability, it is a struck
deal . Nine months after calling it off, Jet Airways is
understood to have negotiated a takeover of Air Sahara,
at a much lower price than the $500 million (Rs.2300 crores)
offered in January 2006.
financial analysts feel that the merger would strain the
profitability and the balance sheet of Jet Airways in
the near to medium term, before the merger can fully realize
the benefits arising out of the synergies.
they are unequivocal in their opinion that the deal is
a real steal for Jet Airways.
take-over has propelled Jet Airways into the Top-500 companies
in India. But importantly, this (the deal) will enable
Jet to ply over a broader expanse, making it a pan-India
network without phenomenal additional investments in logistics
and infrastructure. Given that Air Sahara operated of
several routes that were different from those of Jets,
Jet Airways need not make any duplicated investment.
decision whether the possession and ownership of Air Saharas
infrastructural facilities will go to Jet, still has to
be taken by the DGCA (Directorate General of Civil Aviation).
The dry and wet lease agreements and the corresponding
tax liabilities also need to be considered, adds Shah.
also inform that both the airliners have reached a commercial
agreement and have informed the arbitration panel about
the same, added sources.
the panel has set the Jet-Sahara hearing for 5:30 pm on
Wednesday. Jet has only two options - either to buy out
Air Sahara or compensate it.