Jet Airways, SpiceJet plan stake sales
While SpiceJet is said to be in preliminary stages of talks, the deal between Jet and Abu Dhabi’s Etihad Airways could be completed first. “The talks are on and it is more or less final,” a government source told FE.
“It may take around a month and half.”
Shares of both airlines soared on Monday after reports of stake sale talks. Jet Airways’ shares closed 10.81% higher on the BSE at R560.40 while SpiceJet’s shares ended the day 12.98% higher at R44.40 after reaching a 52-week high of R46.85 during intra-day trade.
“We are aware that recently there has been much speculation in the press,” said Jet Airways in a statement to the BSE. “The company cannot comment on such speculative reports.”
Over the weekend, an investment-focused website reported Jet Airways has finalised a deal to sell 25% stake to Etihad for $400 million which would value the airline at $1.2 billion.
The valuation could not be independently confirmed by FE. However, sources in the know of the development told FE that global audit and consultancy firm Ernst & Young was consulting Jet on the deal. Meanwhile, SpiceJet informed the BSE that reports of a stake sale were pre-mature but investors are interested.
“Although few investors have evinced interest in the company post the Government allowing FDI in civil aviation, it will
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