To bid for debt-ridden Jet Airways, the Hinduja Group has obtained approval from key stakeholders, including founder Naresh Goyal and Etihad Airways, according to a report by The Economic Times.
Investment bankers led by SBI Capital Markets will conduct the due diligence for the Hinduja Group, which will commence soon, the report said.
The Hindujas expect the banks to take a significant haircut, with initial calculations placing the airline’s dues at Rs 12,000 crore, the publication said.
The company is trying to get support from bankers and the government for a revival plan before going ahead with the bid, the report added.
Moneycontrol could not independently verify the story.
It is not certain if Jet Airways has found an investor yet, a source told The Economic Times.
“Any investor will have to wade through several levels of due diligence. Without the audited financial results, no investor can be sure of the gaping hole that is Jet’s accounts at this point.” The source said.
The Hinduja Group’s acquisitions are typically based on obtaining controlling interest.
Also read: Jet Airways' employees in talks to raise $700m; seek additional information from SBI Caps
The Tata Group had expressed interest in placing a bid for Jet Airways, but it eventually lost interest, another source told the paper.
This is not the first time the Hindujas has expressed interest in the aviation space. During 1997-2000, it partnered with Lufthansa AirCargo for services between Sharjah and India.
It reportedly showed interest in Air India as well when it was open for privatization.
Jet Airways temporarily suspended operations on April 17; it is on a time crunch to find investors.
Rival airlines have been competing for slots left vacant by Jet Airways and eyeing its large number of overseas routes.
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