The Hindu Business Line : Jet to dilute 10% equity: Goyal

Mr Naresh Goyal, Chairman, told newspersons on the sidelines of the company’s 16th annual general meeting, “We are talking to renowned international funds for diluting up to 10 per cent stake.”

Mr Goyal said the stake sale might go up to 15 to 20 per cent depending on the market conditions. He added this is to strengthen the balance sheet. However, he clarified that it is “not a distress sale.”

Replying to a query, on whether the company stake will be sold or Mr Goyal would part with a portion of his promoter’s stake, a senior official from the airline said, “It is not yet decided, it could be either ways. However, if it is promoter’s stake, then it will be infused back into the company through a rights issue.”

Mr Goyal has been indicating in the past that he is willing to sell 5 to 10 per cent of his current 80 per cent stake to infuse money into the company. However, he did not disclose any time frame and refused to give one on Monday as well.

Inducting aircraft

Earlier, answering to shareholders’ queries, the company said that it plans to take delivery of eight aircraft in the next three years. The five Airbus 330s and three Boeing 777s will cost Jet $1 billion, which would be funded through 100 per cent debt.

Jet Airways is also planning to re-brand its value carrier Jetlite in the next few months. Mr K.G. Vishwanath, Senior General Manager, MIS & Investor Relations, told Business Line that the carrier will have a new logo by the end of this fiscal. “While the in-flight offerings will remain the same, the carrier will induct 10 new aircraft in the fleet between August 2009 and August 2011.” The company had earlier mentioned that these orders are worth $350 million.