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Apr 2007

Jet Airways to take over Air Sahara for Rs 1,450 crore

     Mumbai: Private carrier Jet Airways has signed a deal to buy out Air Sahara for Rs 1,450 crore, after the Arbitration Panel gave its approval to the offer on Thursday. The three-member Arbitration Panel comprising of Supreme Court Justices S P Bharucha and Jeevan Reddy, and British Judge Lord Stein gave approval after scrutinizing the draft proposal of the two aviation giants. According to Jet Airways counsel Harish Salve, the revised deal values Air Sahara at Rs 1,450 crore. This price is 40 per cent less to the originally agreed price. Under the revised deal, Jet Airways has valued Air Sahara at Rs 2,050 crore. An amount of Rs. 600 crore is expected to be adjusted as arrears, interest and other liabilities. Of the balance Rs 1,450 crore, Jet has already paid Rs 500 crore as advance in lieu of the shares pledged by Sahara last year. Salve further said that Jet will pay rupees 400 crore by April 20, adding that the remaining will be paid in equal annual instalments payable till 2011. Jet informed the Bombay Stock Exchange that it has agreed to acquire all shares of Sahara Airlines for total amount of Rs 1,450 crore. Jet Airways-Air Sahara deal had run into rough weather in June last year reportedly due to the absence of regulatory approvals, including security clearance for Jet chief Naresh Goyal to join Air Sahara's Board. Jet Airways India Ltd had inked a deal for acquisition of Sahara Airlines for 500 million dollars (Rs 2,300 crore) on January 18, 2006.
-Apr 12, 2007