Hinduja Group is evaluating the possibility of bidding for now defunct Jet Airways, the conglomerate told Reuters on Tuesday, 21 May, following which, shares of the grounded carrier soared as high as 14 percent in afternoon trade.
The company spoke about mulling over bidding for the cash-strapped airline in response to Reuters request for comment on the Economic Times report that said Hinduja group will initiate the bidding process this week.
The Group is in talks with airline founder Naresh Goyal and its investor - Etihad, the ET report said, adding that the company is also holding deliberations with SBI Capital Market-led investment bankers for due diligence.
Both SBI Capital Markets and Etihad did not immediately respond to the Reuters request for comment.
‘Clarity on Jet Airways Expected in a Week'
On Saturday, 18 May, State Bank of India Chairman Rajnish Kumar had said that clarity on the future course of the airline will emerge in a week's time.
"Various options are being evaluated. Legal opinion is being taken. There are many investors who are showing interest. We have to see whether they have the money and the wherewithal. I think the clarity should emerge in a week's time," the SBI top boss told news agency IANS.
Top Executives Resign Citing ‘Personal Reasons’
Lenders of Jet Airways, led by the SBI, are currently in the process of selling the airline to recover their dues of over Rs 8,400 crore.
Private equity firm TPG Capital, Indigo Partners, National Investment and Infrastructure Fund (NIIF) and Etihad Airways were shortlisted to submit their bids after they put forward their Expression of Interest (EoI).
But on 10 May, the last date for submitting the binding bids, only Etihad gave its offer and that too in the eleventh hour. The other two bids received for the airline were unsolicited.
While the lenders are vetting various proposals, most of the top Jet executives, including its Chief Executive Officer (CEO), Chief Financial Officer (CFO) and Company Secretary, have resigned from their respective positions citing personal reasons.
Abu Dhabi-based Etihad Airways, which holds 24 percent stake in the crisis-hit Jet Airways, is currently the only solicited bidder for a stake in the airline. But experts have found its bid unattractive for the lenders given the multiple riders attached to it.
(With inputs from Reuters, The Economic Times and IANS)
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