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Jet Airways share skids 8% after Hindujas, Etihad fail to strike a deal

There was speculation in the market that the Hinduja Group may bid for Jet Airways this week, having got the approval of its key stakeholders, including founder Naresh Goyal and Etihad

twitter-logo BusinessToday.In   New Delhi     Last Updated: May 24, 2019  | 13:43 IST
Jet Airways share skids 8% after Hindujas, Etihad fail to strike a deal
Hinduja Group and Etihad Airways have failed to finalise a deal for joint ownership of Jet Airways

Shares of debt-laden Jet Airways tumbled over 8 per cent in early deals on Friday after media reported that Hindujas Group and Gulf carrier Etihad Airways failed to reach a deal on the crisis-hit airline.

Weighed down by the development, Jet Airways share price declined as much as 8.09 per cent and touched an intra-day low of Rs 143 against previous close level of Rs 155.60 on the Bombay Stock Exchange.  The stock was currently trading at Rs 150.50, down 3.28 per cent.

On the National Stock Exchange, Jet Airways shares were down 3.47 per cent at Rs 150.05 apiece. The scrip opened sharply lower at Rs 146.15 against previous close of Rs 155.45 and slipped to a day low of Rs 142.35 in the early trade.

There was speculation in the market that the Hinduja Group may bid for the grounded airline this week, having got the approval of its key stakeholders, including founder Naresh Goyal and Etihad. While the Goyal family owns 51 per cent of the airline, but has pledged 31.2 per cent with lenders, the Gulf carrier is Jet's second largest shareholder, with a 24 per cent stake.

The BSE has sought clarification from Jet Airways (India) with reference to news reported in a leading daily that Hindujas and Abu Dhabi-based Etihad failed to strike a deal on Jet Airways.

Also Read: Hinduja Group set to bid for Jet Airways this week

Business Standard has reported that Hinduja Group and Etihad Airways have failed to finalise a deal for joint ownership of the crisis-hit airline. It was also reported that lender-led by SBI are not ready to consider the unsolicited bids, citing that they have no proven credentials in running a big business.

The consortium of lenders to Jet Airways, which seeks to recover their dues of over Rs 8,400 crore, had only received bid from Etihad Airways to buy stake in the cash-strapped airline. The SBI had reportedly approached unsolicited bidders including, UK-based entrepreneur Jason Unsworth, Mumbai-based Darwin Platform Group and AdiGro Aviation, to buy stake in the airline.

Last week, State Bank of India (SBI) chairman Rajnish Kumar had reportedly said that clarity over future of Jet will emerge in a week's time.

"Various options are being evaluated. Legal opinion is being taken. There are many investors who are showing interest. We have to see whether they have the money and the wherewithal. I think the clarity should emerge in a week's time," the SBI chief told IANS.

Edited by Chitranjan Kumar

Also Read: Share Market LIVE: Sensex climbs 433 points, Nifty at 11,792; Bharti Airtel, Zee Entertainment, L&T top gainers

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