Naresh Goyal to opt out of Jet Airways bidding process

Jet Airways founder Naresh Goyal has reportedly opted out of bidding for stake acquisition in the ailing airline. The development came after Etihad Airways and TPG Capital threatened to walk out of the deal if Goyal was a part of it.

Reportedly, the airline management is expected to completely shut down its operations as there is no financial assistance as of now from the lenders. Delaware-based firm named Future Trend Capital, London-based entity called Adi Partners, Etihad, TPG and Indigo Capital are some of the bidders who have submitted their expression of interest (EOI) for the same.

SBI Caps will select the qualified bidders. State-run National Infrastructure and Investment Fund are expected to bid directly. Etihad owns at least 24 per cent of Jet Airways and has said that it wants to continue keeping it that way.

Apparently, Etihad had two conditions: Goyal’s complete exit from the airline and exemption from a capital markets rule that mandates companies to put an open offer of 20 per cent shares if it has acquired 25 per cent in a company.

Civil Aviation Minister Suresh Prabhu had called for a review of issues related to struggling airlines, including rising fares and flight cancellations. He has also asked Civil Aviation Secretary Pradeep Singh Kharola to take necessary steps to protect the rights and safety of passengers. Yesterday, lenders did not take a final decision on providing emergency funds to the cash-strapped carrier.

Shares of Jet Airways plunged nearly 19 per cent today  amid reports that the company is likely to temporarily shut down its operations.

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