Jet Airways lenders set terms of offer for up to 75% stake sale
Cash-strapped Jet Airways lenders, led by the State Bank of India (SBI), invited expressions of interest (EoI) on Monday to sell up to 75% stake in the company besieged aerial.
In recent weeks, the lenders have reportedly been in talks with several investors, including Tata Group, Adani Group, TGP Capital, the Delta-KLM-Air France trio, Singapore Airlines, IndiGo, SpiceJet, Etihad Airways and National Investment and Infrastructure. Funds (NIIF).
Sources said many of these players have already initiated due diligence for the deal. However, the names of the players participating in the auction can only be known on Tuesday after the end of the EoI submission deadline. Some investors may not participate in the transaction if they do not find it attractive enough after the due diligence is completed.
The EoI document presented by the lenders indicates that it is seeking a change in the control and management of Jet Airways. The consortium has proposed to offer at least 3.54 crore of shares of the airline comprising 31.2% of the company’s share capital and up to a maximum of 8.51 crore of shares comprising 75% on a fully diluted basis, subject to approval, he said.
EoI rules state that bidders can be Strategic Investors (SI) and / or Financial Investors (FI).
“SIs can include companies with experience in similar industries with national or global experience, or both. FIs can include private equity funds, investment funds, etc.,” he said. said, adding that SI should have at least three years of experience in commercial aviation.
In case the tenderer is a consortium, it must be composed of not more than three members, the participation of an individual member being not less than 15% and must also have a lead member.
However, analysts are questioning how the lenders came up with the EoI, giving interested players just two days to participate. “It now seems that the airline is at the mercy of the lenders. Even if we are going to buy an apartment, it takes longer. In this case, the banks are asking investors to take over a company that has several debt. thousands of crore rupees, ”said an aviation analyst, declining to be quoted.
Jet Airways lenders, in a statement released on April 4, said they intended to pursue the bank-led resolution plan for the sale of the stake in the company within a legally specified timeframe. and current regulatory framework and intend to invite expressions of interest.
In addition, the lenders continued that they were aware that the outcome of the efforts will depend on the interest shown by the parties in the sale of the stake in the company. “Although every effort is made to sell the units by the lenders, other options may be considered by the lenders if these efforts do not lead to an acceptable result,” the statement continued.
STRUGGLE TO STAY Afloat
3.54 cr – Shares that the lenders have proposed to offer, representing 31.2% of the share capital 8.1 cr – Maximum shares offered, on a fully diluted basis