GET Stock QuotesNews18 APP
News18 English
»
1-min read

Tata Group Trying to Buy Stake in Troubled Jet Airways: Report

The USD 103-billion Tata Sons is already in the airline industry through joint ventures with Singapore Airlines which operates Vistara, and budget airline AirAsia. If the deal with Jet is successful, Tata can amp up its aviation business in terms of network and market share.

News18.com

Updated:October 18, 2018, 10:50 AM IST
facebookTwittergoogleskypewhatsapp
Tata Group Trying to Buy Stake in Troubled Jet Airways: Report
Jet Airways (FILE PHOTO)
Loading...
Tata Group, India’s largest business conglomerate, has initiated discussions to buy a large stake in the loss-making Jet Airways.

Naresh Goyal’s Jet Airways, which has delayed the salaries of its pilots and may default on payments, is looking for an equity collaboration but Tata Sons seeks management control, according to a report in The Times of India.

The USD 103-billion Tata Sons is already in the airline industry through joint ventures with Singapore Airlines which operates Vistara, and budget airline AirAsia. If the deal with Jet is successful, Tata can amp up its aviation business in terms of network and market share.

While both companies are trying to make the discussion successful, contentious points like full management control and the role of Jet chairman Goyal could make things difficult. The beleaguered airline had held one round of talks with buyout investor TPG, but it didn’t go through due to differences over controlling rights.

According to TOI’s report, the Tata Group would be interested to buy at least 26 percent in Jet, which would trigger an open offer of an additional 26 percent from Jet’s shareholders.

Abu Dhabi-based Etihad Airways, which holds a 24 percent stake in Jet Airways, made a $35 million “cash pre-purchase payment” to help Jet Airways deal with the in financial troubles. However, Etihad may sell a part or all of its stake in Jet Airways if the Tata Group comes into the picture, the report said.

Tata Sons chairman N Chandrasekaran may push the company’s aviation business through mergers and acquisitions. When Air India was put on the block by the government, Tata Sons had shown interest but didn’t go through with it finally.

Tata Group is trying to overhaul its aviation business by bringing new leadership and additional funds in AirAsia and Vistara. There is speculation that former IndiGo president Aditya Ghosh may be brought in to head Tata’s aviation business.
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 192.10 -6.20
Indiabulls Hsg 706.60 -3.71
ICICI Bank 357.90 -1.24
Reliance 1,137.40 -1.10
Jet Airways 310.35 -3.83
Company Price Change %Gain
Yes Bank 192.55 -6.10
Varun Beverages 781.90 -0.03
Indiabulls Hsg 707.40 -3.79
Jet Airways 310.10 -3.99
Dewan Housing 225.05 -3.06
Top Gainers
Company Price Change %Gain
GAIL 344.05 2.79
Adani Ports 355.25 1.34
IndusInd Bank 1,557.85 1.29
Bajaj Finance 2,380.10 0.81
Zee Entertain 448.10 0.29
Company Price Change %Gain
IndusInd Bank 1,558.35 1.34
Adani Ports 354.15 1.24
M&M 782.70 0.30
HDFC Bank 2,015.25 0.06
Top Losers
Company Price Change %Gain
Yes Bank 192.10 -6.20
Hindalco 221.95 -5.33
Indiabulls Hsg 706.60 -3.71
Wipro 321.30 -3.47
Dr Reddys Labs 2,443.15 -3.38
Company Price Change %Gain
Yes Bank 192.55 -6.10
Tata Steel 563.50 -3.21
Vedanta 205.10 -2.89
Wipro 321.70 -2.59
NTPC 149.35 -2.42

Live TV

Loading...
Loading...