The Hindu Business Line : Jet to pay Sahara Rs 500 cr advance

Jet Airways has agreed to pay an advance of Rs 500 crore to Air Sahara as part-payment for buying out the latter , thereby, putting at rest speculation that the deal had run into rough weather.

In a statement, the airline announced that it has reached an understanding with Sahara Airlines and its shareholders to extend the share purchase agreement by 90 days.

"The enterprise value of the transaction remains unchanged at around $ 500 million," the statement adds. The two airlines have also agreed to extend the term of the Escrow Arrangement by 90 days.

The escrow account in a Mumbai bank was earlier due to close today when the 65-days period within which the sale was to be completed earlier ended.

Jet Airways agreed to purchase Air Sahara on January 19 this year at a price of Rs 2,217 crore.

The statement also contains a significant clause that "if the agreement terminates, the advance will be repaid to Jet Airways." During the extended term, the two airlines will continue to operate as independent entities.

The statement comes a day after hectic negotiations were held between senior officials of the two airlines on how to take the deal forward.

More Stories on : Airlines | Mergers & Acquisitions | Jet Airways (India) Ltd

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

Stories in this Section
Bay clouds promise breezy wet session

Bharti also rings expansion tone

One India plan: BSNL gets 2.5 lakh users

Jet to pay Sahara Rs 500 cr advance

Inflation rises to 4.28 pc on energy product prices

Rlys hikes haulage charges for container operations

No guarantees for ultra mega power projects

DEPB scheme extended by a year

4 in race for coal PF assets management

BVR Subbu to quit Hyundai

HCL wins Rs 804-cr case

Gautam Thapar likely to take over as BILT Chairman

Govt firm on early capital account convertibility

SBI arms, power stocks lead bull charge

Mobile TV set to power ahead

Arbitrage gains for STD booth owners?