Financial Daily from THE HINDU group of publications
Saturday, May 13, 2006
Financial Daily from THE HINDU group of publications Saturday, May 13, 2006 |
|
|
|
|
|
|
|
Logistics
-
Mergers & Acquisitions Industry & Economy - Regulatory Bodies & Rulings MRTPC tells DG to submit report on Jet-Sahara deal Our Bureau
New Delhi , May 12 The Minister for Company Affairs, Mr Prem Chand Gupta, informed the Lok Sabha on Friday that the Monopolies and Restrictive Trade Practices Commission (MRTPC) has forwarded a representation on the Jet Airways-Air Sahara deal to the Director-General (Investigation and Registration), a wing of the MRTPC. The Commission has directed the DG to submit a preliminary investigation report, which was yet to be received, the Minister told the Parliament in a written reply. In January this year, Jet Airways signed an agreement to purchase Air Sahara for a consideration of $500 million. The agreement saw Jet Airways acquire 27.6 crore equity shares (with a face value of Rs 10), five crore preferential shares and the Group loans. The agreement saw the entire aviation business of Air Sahara, including some of aircraft leases, real estate such as the lounges run by it and assets such as auxiliary power units and engines, being taken up by Jet Airways. However, some other investment with Air Sahara, including helicopters, the personal BBJ, some advances and the contract with the Board of Control for Cricket in India (BCCI), are to be carved out and sold back before the transaction happens. The Commission had issued notices seeking the details of Jet Airways' acquisition of Air Sahara to see whether the deal violated any of the provisions in the MRTP Act. The Commission will see if the buyout, which would give Jet Airways a domestic market share of close to 50 per cent, has led to abuse of monopoly. The DGIR probe will look into the issue of trade practices with regard to monopolies and restrictive trade practices.
More Stories on : Mergers & Acquisitions | Regulatory Bodies & Rulings | Airlines | Jet Airways (India) Ltd
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|