Jet’s lenders to reach out to unsolicited bidders
MUMBAI: Lenders to Jet Airways (India) Ltd will begin reaching out to unsolicited bidders for the grounded airline after existing shareholder Etihad Airways PJSC declined to raise its stake beyond the current 24%, said two people aware of the development, requesting anonymity. They said Etihad has offered to infuse close to ₹1,400 crore in Jet Airways, aimed at keeping its stake at the current level.
“For Jet Airways, which has total liabilities of ₹15,000 crore, this is hardly enough,” said the first person cited above.
The lenders, who currently control Jet Airways, have therefore decided to approach a group of bidders who have shown interest in taking a stake in the carrier after the formal bidding process closed on May 10, the person added.
Mint reported on Monday that Etihad’s bid last week was non-binding in nature and is subject to fulfilment of certain conditions by Jet’s lenders. Etihad said also that it is interested in reinvesting in a minority stake in Jet Airways subject to conditions that include finding more investors.
Etihad, India’s National Investment and Infrastructure Fund (NIIF) and private equity firms TPG Capital and Indigo Partners had in April submitted their expressions of interest (EoIs) as part of a bidding process for a stake in Jet Airways.
Queries sent to NIIF, SBI Caps and the SBI didn’t elicit any response till press time.