Jet Airways set to launch rights issue, finalise Southeast Asian hub and dilute promoter equity
07 January 2008
Mumbai: Naresh Goyal, chairman, Jet Airways, will shortly go in for a private placement of shares or make a qualified institutional placement (QIP) in order to dilute his promoter equity in the airline by five per cent. The move would be made in line with Securities and Exchange Board of India regulations for listed companies, under which the promoter stake needs to be at 75 per cent.
According to reports, Goyal has indicated that he is in talks with merchant bankers and that the equity sale should be finalised soon.
Jet Airways will also launch its proposed $400 million rights issue in the current fiscal.
Jet, according to Goyal, is also set to choose a Southeast Asia hub for its operations in the region, and will opt either for Bangkok or Kuala Lumpur. This would allow Jet to offer services to additional international destinations and also increase the number of flights out of the proposed hub.
The airline's code sharing arrangement with several airlines operating out of the region, including Qantas, ANA and Malaysian Airlines, would allow it to serve a larger number of passengers.
The proposed Southeast Asian hub would be Jet's second international hub, after Brussels in Europe, where it has tied up with Brussels Airline.