No Jet Airways takeover proposal yet, talks at preliminary level: Tata Sons

No Jet Airways takeover proposal yet, talks at preliminary level: Tata Sons

Courtesy : Nationalist Bureau19/11/2018 09:27

New Delhi: Amid reports that Jet Airways is nearing a deal with Indian conglomerate Tata Sons Ltd, the latter has said no proposal has been made for a possible takeover and the talks are at a preliminary level only.

Naresh Goyal, along with his family, owns a 51 per cent stake in the company, while Etihad Airways owns 24 per cent in the cash-strapped airline.

Tata Sons’ businesses range from IT services to car-making. In aviation, it runs full-service carrier Vistara with Singapore Airlines and operates low-cost domestic carrier AirAsia India along with AirAsia Group Bhd.

Earlier this week, Jet reported Rs 1,261 crore in losses for the September quarter against a profit of Rs 71 crore year on year, making it the third straight quarter of heavy losses. This had the airline also putting as many as six of its Boeing 777s on sale to part-fund liquidity.

Shares of Jet Airways surged for a second straight day, climbing 8.07 per cent. Jet shares, which had fallen 69 per cent this year, rose as much as 30 per cent before ending almost 25 per cent higher at Rs 320.9 on record volumes on Thursday. That was their best closing level since late August and their best performance in terms of percentage since its listing in 2005.

The company’s financial crunch has resulted in delayed payments to its vendors and salaries to a section of its over 16,000 employees.

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