Jet Airways share price surged nearly 30% on Thursday amid speculation that Tata Group Chairman N. Chandrasekaran is likely to pitch for board’s backing to acquire the Naresh Goyal-led airline. Notably, Jet Airways shares today marked the biggest intra-day percentage gain in over three years, surging 29.93% to an intra-day high of Rs 334.90 per share on the BSE. The stock closed 24.52% higher at Rs 320.95. It has rallied nearly 87% since its October 1 closing level.
According to various media reports, Tata Sons Ltd is seeking to acquire a controlling stake of debt-laden Jet Airways. Tata Sons Chairman N. Chandrasekaran is also likely to present a business viability plan to the board on Friday on a proposed acquisition of cash-strapped Jet Airways, the TOI reported citing people close to the development. Earlier on Wednesday, the airline shares rose to an intra-day high of over 6% after media reports said Tata Sons is conducting due diligence on Jet Airways as it explores the purchase of a controlling stake in the cash-strapped airline.
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Tata Group was reportedly among the interested parties to buy the Naresh Goyal-promoted beleaguered airline. However, Jet Airways termed the report as “speculative” in response to the clarification sought by the stock exchanges. “Please note that the subject news is speculative in nature and that there are no discussions or decision by the Board…,” the airline said on Tuesday in a regulatory statement to the BSE.
In addition, clarifying on other news reports regarding sale of Boeing planes, Jet Airways today said the Board of Directors, in its meeting held on 27th August 2018, considered various cost-cutting measures, debt reduction and funding options, including infusion of capital, monetization of assets and sale of Company’s stake in its Loyalty program. “These measures also include carrying out a sale and subsequent leaseback of its finance leased aircraft,” the airline said in statement.
“We are committed to make appropriate disclosures in accordance with applicable regulations to avoid any speculative activities and have been regular in making the required disclosures…” Jet Airways added. Earlier this week, Jet Airways reported a loss of Rs 1,297 crore for the September quarter mainly on account of soaring fuel costs, depreciating rupee and intense competition among carriers. Notably, this was the third straight quarter of losses for the beleaguered airline.