Jet Airways initiates stake-sale process to raise around $350-400 million from global private equity firms

The Naresh Goyal-promoted Jet Airways, amid fiscal conditions under pressure due to the surging jet fuel prices and low fares, has reportedly initiated a stake-sale process to raise around $350-400 million from global private equity firms, a media report said. The airline, which deferred its June quarter results last week without specifying any reasons, has approached bulge-bracket funds including Blackstone, TPG and Indigo Capital Partners, The Economic Times reported, citing people aware of the development. The news report said that a global investment bank has been roped in to help Jet Airways raise funds. Global carriers Lufthansa and KLM-Air France have reportedly joined the race along with US airlines Delta to invest around $200-250 million in Jet Airways, another Economic Times report said. On Sunday, Directorate General of Civil Aviation (DGCA) said it would conduct a financial audit of Jet Airways, amid its fiscal conditions under pressure due to the surging jet fuel prices and low fares, a source said. [caption id=“attachment_4883531” align=“alignleft” width=“380”] Representational image. Reuters[/caption] “We will conduct the financial audit of Jet Airways from 27 August. A similar audit of Air India has been completed,” the source said. Jet Airways confirmed that the regulator will be evaluating its performance and said the airline is prepared for it. Earlier, newspaper Mint had reported that Jet Airways approached investment bankers again to help sell a stake in the carrier, citing two people with direct knowledge of the matter. “Jet Airways is looking to raise immediate cash and the transaction may include Jet Airways founder Naresh Goyal offloading a part of the promoter’s stake in the company,” one of the sources told Mint on condition of anonymity. However, the airline had denied reports of a stake sale in first week of August. Jet Airways had also dismissed questions raised on its ability to keep the airline operational. “Jet Airways (India) would like to clarify that recent media reports about the sustainability of the airline are not only factually incorrect but also malicious. The airline would also like to deny any conjecture of a stake sale,” the airline’s CEO Vinay Dube was quoted as saying by The Hindu Business Line. Gulf carrier Etihad holds 24 percent stake in the Naresh Goyal-led airline.