GoAir likely to sell 40% stake to Qatar Airways: Sources
Domestic aviation major GoAir is likely to sell its 40 percent stake to Qatar Airways; in an attempt to reduce its debt. It is believed that the airline has also appointed two bankers to hunt for buyers and facilitate the deal.
August 10, 2013 / 09:29 IST
Wadi Group-led low fare carrier GoAir is learnt to be in talks with Qatar Airways to sell around 40 percent stake to the former. The Mumbai-based airline has already appointed two bankers to facilitate this deal, reports CNBC-TV18’s Kritika Saxena. Sources also indicate that talks have already begun for a likely sale.
Also read: SpiceJet in talks with Tigerair for stake saleCurrently, the valuation details have not been discussed. The Wadias hold complete stake in GoAir, which increases the scope of bringing it down to reduce its debt. The Qatar-based airline will also have the option to hike it to 49 percent under foreign direct investment (FDI) regulations eventually. However, both airlines are concerned about their respective bilateral rights in each other's countries with respect to government policies. GoAir may be looking to bring the foreign investor within the next couple of months. Meanwhile, it is also likely that Tiger Airways may be in talks with the airline. According to sources, they have spoken to both GoAir and SpiceJet for an investment in an Indian airline and the discussions are on. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
