Tuesday, April 10, 2007

Jet to buy Air Sahara at less than $500 mn

Nine months after calling it off, Jet Airways is understood to have struck a deal to revive the takeover of Air Sahara, but at a lower price than the $500 million offered in January last year.

The agreement, which was reached during the final arbitration hearings here, valued the deal at little over Rs 1,800 crore.According to sources Jet, leader in the domestic aviation space, will not pay Rs 275 crore toward 'creditors deduction'.

Naresh Goyal-promoted Jet has already paid Rs 500 crore in lieu of shares pledged by Sahara last year. The remaining nearly Rs 1,365 crore would be paid through the bank account to complete the deal.

Meanwhile, there are reports that valuation of Air Sahara could be around Rs 1,800 crore and Jet may offer to takeover the airline for that amount, which would include adjustment of Rs 500 crore already paid to the Lucknow-based carrier.

Read more in The Economic Times article.

No comments: