Jet Airways buys out Air Sahara

    New Delhi: Making history in India's aviation history, the Jet Airways has clinched a deal to take over Air Sahara for over 500 million dollars. Announcement of the agreement is expected any time. It will be the biggest amalgamation of airlines in the country. "They have agreed to buy Sahara for 500 million dollar in all- cash deal," sources in Sahara Group said within minutes of Jet informing the stock exchange its board decision to acquire Air Sahara late on Wednesday night. In its communication jet informed BSE that "The board of directors of the company has considered and approved the acquisition by the company of 100 per cent of the fully paid up equity share capital of Air Sahara." The deal is, however, subject to receipt of regulatory approvals as may be required.

    Sources said the deal was inclusive of all the liabilities of Air Sahara which were brought down to about Rs 150 crore ahead of the takeover agreement. This would mean the acquisition of 27 aircraft fleet for about RS 2,450 crore, a price significantly lower than the valuation Air Sahara had done through Ernst and Young. While Jet officials were not available for comments, sources said that Sahara had also agreed to forego its claim on Air Sahara brand and it was up to Goyal`s company to decide the next course of action indicating that in the next two-three months Jet would merge the brand in the parent company. On the cricket`s sponsorship that it clinched last month, Sahara sources said that this would continue with the group.

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