After receiving Etihad’s offer to buy partial stake in Jet Airways, lenders to the grounded airline will come up with a new scheme to attract more investors. SBI Caps, which is conducting the stake sale process of Jet Airways, will be coming up with a fresh plan by the end of this week.
According to sources with direct knowledge of the development, Etihad has shown interest to acquire a only partial stake in Jet Airways — around 24% — which is one-third of the requirement. SBI Caps will chalk out the contours of the new scheme based on Etihad’s offer. “It [Etihad’s bid] is a bid, but it is not a complete bid. They are saying they are willing to participate, provided there is also someone who comes in. They have communicated their terms and conditions in their bid,” said a source.
Sources said after fresh shares are issued, Etihad’s stake will fall to almost zero, from 24% now. Etihad has indicated it would like to retain 24% stake in the airline and has offered ₹1,700 crore.
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Jet promoter Naresh Goyal has 51% stake in the airline, while 25% is the public holding. “They will contribute about one-third of the requirement. So the remaining two-third has to come from other investors,” the source said. By remaining at 24%, there will be no need for an open offer — a scenario Etihad was keen to avoid. The move to invite more investors will open up opportunity for investors like National Investment and Infrastructure Fund (NIIF), a joint venture between Government of India and Abu Dhabi Investment Authority.
While NIIF participated in the expression of interest (EoI) stage, it did not submit a binding bid. Four entities had submitted their EoI, but only Etihad submitted the binding bid, albeit with conditions. Earlier, after the airline had defaulted on repayment, SBI helped prepare a bank-led resolution plan and began the sale process.
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