Naresh Goyal likely to bid for stake in Jet Airways: report
11 April 2019
Former Jet Airways chairman Naresh Goyal is likely to submit initial bids for buying back stake in the airline that lenders are now offloading, reports citing sources close to the development said.
The initial bidding process and the Expressions of Interest (EoIs), however, are non-binding and are exploratory in nature.
"Naresh Goyal is expected to submit initial bids for Jet Airways sale today," reports quoted a source close to Goyal as saying. The bidding norms allow Goyal to participate in the sale process, the source added.
As many as five companies are reported to have submitted expressions of interest in picking up stakes in Jet Airways that have been put on sale by lenders as part of a rescue plan.
Lenders have, meanwhile, extended the Wednesday deadline by two days, in the hope that Etihad Airways, which hasn’t submitted an EoI, will show interest.
SBI Caps, which invited EoIs for stake sale in the debt-laden Jet Airways on behalf of the lenders consortium, has already extended the date for submission of bids to 12 April from 10 April earlier.
Lender banks are offering between 31 per cent and 75 per cent stake in the airline for investors. The bidder has to have a minimum of Rs1,000 crore net worth to qualify for bidding
SBI chairman Rajnish Kumar last month said, "It could be financial investor, it could be airline... including Naresh Goyal himself or Etihad. Nobody is barred from bidding or taking over the airline as per the rule."
Naresh Goyal, the founder of Jet Airways, and his wife Anita Goyal last month stepped down from the board of the ailing airline, ceding majority control to the consortium, following reduction in their stake as per the resolution plan formulated by the lenders.
The airline currently owes Rs8,000 crore to lenders, led by the SBI.
Jet Airways founder Naresh Goyal has pledged 26 per cent stake in the ailing airline as security for loans from Punjab National Bank, according to a regulatory filing.
Last month, Naresh Goyal and his wife Anita Goyal quit the board of cash-strapped carrier as part of a debt resolution plan.
Jet Airways today informed the stock exchanges that Goyal has pledged over 29.5 million shares or 26.01 per cent stake with Punjab National Bank.
The pledge was created on 4 April as "security for existing/ new borrowings taken by Jet Airways (India) Ltd," the BSE filing said.
Lenders also released over 57.9 million shares held by him that were kept as security (non disposal undertaking) against borrowings by the airline, as per the filing.
Goyal resigned as chairmanship of Jet Airways, which he founded more than 25 years ago, after financial creditors took control of the airline under a debt restructuring plan.