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Expect buyer for Jet Airways by 31 May; Naresh Goyal can increase stake beyond 25% in future: SBI chairman

New Delhi: State Bank of India (SBI) on Monday said that it expects investors for the cash-strapped Jet Airways by the end of May and promoter Naresh Goyal has option of increasing his stake in the beleaguered airline to beyond 25 percent in the future.
Consortium of lenders led by the SBI has agreed to put in Rs 1,500 crore immediate funding by acquiring 51 percent stake in the company through issue of Rs 11.4 crore fresh shares.

 Expect buyer for Jet Airways by 31 May; Naresh Goyal can increase stake beyond 25% in future: SBI chairman

Representational image. Reuters.

As a result, the stake of promoter Goyal will come down to 25 percent from 50 percent, while Abu Dhabi's Etihad Airways, which had a 24 percent stake in the carrier, came down to 12 percent.

Bidding process to be initiated by lenders for sale to new investor(s), the process expected to be completed in June quarter as per the resolution plan.

"June is too late. My expectation is 31 May ...market is open for everyone whosoever wants to come in. There will be expression of interest which will be given by April 9 and binding bid by April 30," SBI chairman Rajnish Kumar told CNBC TV18.

"It could be financial investor, it could be airline...including Naresh Goyal himself or Etihad. No body is barred from bidding or taking over the airline as per the rule," he said.

Goyal and his wife Anita will step down from the board of the ailing airline following reduction in their stake to 25 percent as per the resolution plan formulated by SBI-led domestic lenders.

After weeks of speculations and uncertainties over the future course of Jet Airways, which has grounded over 80 planes due to financial woes, approved constitution of an Interim Management Committee to manage and monitor the daily operations and cash flow of the company.

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Updated Date: Mar 25, 2019 18:59:30 IST

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