The relatively easy terms on which lenders to the cash-strapped Jet Airways are willing to sell the carrier should attract at least a couple of buyers. While not specifying a floor price, lenders are willing to hand over the airline to a strategic bidder with a minimum net worth of Rs 1,000 crore or even a three-year track record in commercial aviation.
A financial investor should have minimum assets under management of Rs 2,000 crore or must commit to an investment of Rs 1,000 crore. The qualification criteria have been waived for government-promoted funds and quasi sovereign wealth funds. National Investment and Infrastructure Fund (NIIF), India’s sovereign wealth fund, is reportedly seeking to invest in the Mumbai-based carrier.
The lenders have put on sale an equity stake of between 31.2% and 75%, according to the expression of interest (EoI) document released on Monday. The carrier, which has accumulated losses of Rs 3,208 crore, commands an enterprise value of approximately Rs 11,000 crore. The Jet stock closed at Rs 264 on the BSE on Monday, up 3% over Friday’s close.
