Etihad Airways and a few unsolicited parties have offered to acquire stake in the grounded Jet Airways, PTI quoted the State Bank of India as saying on Friday. Etihad Airways was among three to submit financial bid for Jet Airways.
The SBI-led consortium of 26 lenders had invited expressions of interest between April 8 and April 12 and had received four preliminary bids. After the first round of bids, private equity firms IndiGo Partners and TPG, Etihad Airways and the sovereign fund NIIF were shortlisted. Friday was the last day to submit the financial bids. The lenders are offering 31.2%-75% stake in the company on a fully diluted basis.
These 26 lenders own 51% stake in the airline. The airline owes over Rs 8,000 crore to the consortium of lenders.
“Sealed bid from Etihad Airways has been received and the same will be submitted to lenders for examination,” said SBI Caps, which has been mandated to oversee the sale. It added that the banks are likely to evaluate the bids next week.
The debt-ridden airline stopped operations temporarily on April 17.
Etihad Airways, which acquired 24% stake in Jet Airways in 2013, said it wants to re-invest in a minority stake in the carrier. “Etihad re-emphasises that it cannot be expected to be the sole investor, and that, amongst other requirements, additional suitable investors would need to provide the majority of Jet’s required recapitalisation,” Etihad said in a statement, reported PTI.
Earlier in April, the Ministry of Civil Aviation had said it will support the resolution process of the airline within the existing regulatory framework. The ministry had said the DGCA and other regulators are monitoring the situation carefully to ensure that all existing rules regarding refunds, cancellations, and alternate bookings are followed strictly.