Financial Daily from THE HINDU group of publications
Tuesday, Jul 16, 2002
Financial Daily from THE HINDU group of publications Tuesday, Jul 16, 2002 |
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Logistics
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Airlines JAL plans to buy out Indian partners in air services co
Ambarish Mukherjee
NEW DELHI, July 15 THE Japanese national carrier Japan Airlines (JAL), which recently resumed its twice-weekly flights between New Delhi and Tokyo, has finalised plans to buy out the Indian partners in its joint venture company Indo-Japan Air Services Private Ltd (IJASPL) and convert it into a wholly-owned subsidiary. The company has filed an application with the Foreign Investment Promotion Board (FIPB) seeking permission to buy out the Indian partners. IJASPL is a leading player in the in-bound travel and tourism sector in India and has carved out a niche for itself in the field of travel and tourism, including religious tours to Buddhist places of interest as well as international conferences and movements of business groups. Currently, JAL holds a 74 per cent stake in IJASPL, while the remaining 26 per cent stake is held by Indian shareholders. The 26 per cent resident equity is divided among three shareholders, Onkar Travels Private Ltd holding 20 per cent, and two individuals — Mr Paramjit Singh Bahia and Mr S.P. Roychoudhury — having a three per cent stake each. The plan envisages JAL buying out the entire resident shareholding at 900 per cent premium. Currently, Onkar Travels holds 4,000 equity shares of Rs 10 each and both Mr Bahia and Mr Roychoudhury hold 600 shares each. JAL will buy out the equity shares of Rs 10 at a price of Rs 100 per share aggregating to Rs 5,20,000. Currently, IJASPL has a small equity base of Rs 4.6 lakh. Post-acquisition, the capital base is likely to be increased in phases on a need-based manner though no amount has been finalised yet. According to industry sources, Japan being a Buddhist-dominated country, the move may be linked with the increase in in-bound Japanese tourists visiting Buddhist's places of interest in the recent past. They pointed out that recently the Government has been talking about developing an international airport in Bodhgaya which may facilitate the arrival of more foreign tourists. Also, it may be noted that recently Sri Lankan Airlines has been permitted to fly on the Colombo-Delhi-Bodhgaya route once a week, mainly to cater to the Buddhist tourists.
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