GoAir may divest minority stake
17 January 2008
Mumbai: Mumbai-based budget carrier GoAir has said that it has been approached by Ernst & Young, acting on behalf of unnamed clients, for divesting equity stake of around 28 per cent in the airline.
The carrier, owned by the Wadia Group, has been valued at $314-400 million by private equity investors. At 28 per cent, the value of the proposed investment would work out to around $88-112 million.
Proceeds from such a deal would be used for fleet expansion and strengthening of its network.
''E&Y has approached us on behalf of various buyers who are interested in buying a minority stake in GoAir,'' GoAir said, without naming the investors.
According to industry sources, the airline would very likely get listed next year.
Sources said GoAir may look to place a second order for 21 aircraft soon in order to operate a fleet of 41 aircraft by 2012.