The Hindu Business Line : Fleet acquisition proposal — Air Sahara may finalise pvt equity investors in 3 weeks

AIR Sahara hopes to finalise within the next three weeks the partner or partners from whom it would like to pick up $100-million private equity to fund its fleet acquisition proposal, the airline President, Mr Ronojoy Dutta, said here on Tuesday.

The airline has received offers from eight financial organisations, most of whom are foreign funds and also some airlines keen in pumping in funds. Officials, however, refused to name either the financial organisations or airlines that have shown an interest in Air Sahara.

"While at this stage we are considering all the offers that have been received, our plan is to work with private equity firms. We plan to look at two or three of the most attractive offers in the next three weeks or so and then take a final decision," Mr Dutta said.

The airline is said to have received a number of "unsolicited bids" which too would be examined, he said.

The deadline of three weeks, however, is not a firm one as several interested parties were raising many questions.

"The deadline is not a firm one. Some parties started the process sooner than the others so it will not be possible to put an exact deadline on when the process will be completed," Mr Dutta said.

In September this year, the airline appointed Ernst & Young as advisor for business plan validation, valuation and fund mobilisation through partners for private equity placement. Initial estimates by E&Y put Air Sahara enterprise value at between $750 million and $1 billion.

Air Sahara plans to shed 15-20 per cent of its equity, depending on the valuation that is done, airline officials said.

The monies raised through private equity placement are to be used to fund the purchase of 15-20 narrow body aircraft that the airline plans to induct over five years. At present, it operates a mixed fleet of 26 leased aircraft.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Centre not to allow States to float airlines for international routes

AI Boeing acquisition proposal gets PMO nod — To be placed before CCEA

Fleet acquisition proposal — Air Sahara may finalise pvt equity investors in 3 weeks

Promotional air fare by Singapore Airlines

Haldia dock shortlists 3 cos for cargo berth

Kochi port union raises contract recruitment issue with panel