The Hindu Business Line : The Big B factor in Jet-Sahara deal

If people involved in the whole process are to be believed, it was the Big B's hospitalisation that helped the two airline promoters — Mr Subrata Roy of Air Sahara and Jet Airways owner Mr Naresh Goyal — meet that led to the confabulations which finally culminated in the deal between the two airlines.

"There were a lot of one-on-one meetings between Mr Roy, who had gone to Mumbai to be with the Bachchan family, and Mr Goyal between December 15 and 28 before the final value of $500 million was decided upon. Just then, there was bereavement in Mr Goyal's family and things went into a hiatus for four days. The final confirmation from the two principals came after the four-day mourning period was over," sources said.

While Mr Bachchan was in Leelavathi hospital from November-end till almost the third week of December, Mr Goyal lost his mother on December 23.

The D-day of January 18, when the agreement was finally inked in Lucknow, was decided upon to get over the mourning period and three inauspicious days that fell in early January. The lawyers came into the picture at this stage (January 5 or 6) and took over to settle the nitty-gritty.

Sources told Business Line that Jet Airways was represented by Mr T.N.V. Iyer, who was earlier on the board of the airline and knows both Mr Goyal and Mr Roy well, and the airline's auditor, Mr Rajesh Chaturvedi.

Sahara Airlines was represented by its auditors, Ernst and Young, who were the advisors to the deal.

Besides, there was a separate team to do the vendor due diligence. Today, the $500-million is in an Escrow account in a bank in Mumbai where they will remain for 60 days after all formal approvals are received for the transaction.

"The transaction was a win-win situation for both the companies. Not only will it help Sahara to focus on its core competencies, it will also allow Jet Airways to consolidate its position," said Mr Jayesh Desai, Head Transactions, Ernst and Young.

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