BUSINESS

Jet may buy Air Sahara for Rs 1,800 cr

Source:PTI
April 10, 2007
The long-standing dispute over Jet Airways buying out Air Sahara appears to be heading for a solution with the arbitration panel set to give its final order on Wednesday.

Nine months after calling it off, Jet Airways is understood to have struck a deal to revive the takeover of Air Sahara, but at a lower price than the $500 million offered in January last year.

The agreement, which was reached during the final arbitration hearings, valued the deal at little over Rs 1,800 crore (Rs 18 billion).

According to sources, Jet Airways will not pay Rs 275 crore (Rs 2.75 billion) towards 'creditors deduction'.

Naresh Goyal-promoted Jet has already paid Rs 500 crore in lieu of shares pledged by Sahara last year. The remaining nearly Rs 1,365 crore (Rs 13.65 billion) would be paid through the bank account to complete the deal.

When contacted, a Sahara spokesperson declined to comment, saying the talks were on through the arbitration panel. Goyal, emerging from the arbitration hearing, also declined to comment, saying "the matter is sub-judice".

Jet's counsel told reporters that the arbitration order was expected on Wednesday and did not divulge further details.

Source: PTI
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