Chairman of the Board of Directors of Tata Sons has decided that he plans to buy Jet Airways: a report, Transport

Thu 15.11.2018 – 13:52

[BENGALURU] Tata Sons Chairman N. Chandrasekaran expects to present to the Board of Directors on Friday a business viability plan for the proposed acquisition of cash-linked Jet Airways, the Times of India reported, quoting people close to developments.

This is the brightest sign that the talks are gathering the vow to conclude an agreement that could transform India's largest conglomerate from an airline to the border of a country with a dominant, fully-service international carrier.

Tata is as diverse as IT and automotive. Aviation operates a joint carrier, Vistar, along with Singapore Airlines. Vistara has asked for the launch of international flights earlier this year.

According to the Economic Times report on Thursday, Tata SIA Airlines, Vistara's parents, looks at a merger with Jet, which is based on entrepreneur Narez Goyal, which holds 51%. Etihad Airways has a 24% stake in Jet.

Tata and Jet were approaching a two-phase transaction that would first see the merger of Jet with Tata SIA through stock exchange, the report quotes sources.

The Goyal family, Etihad, Tata Sons and Singapore Airlines will become partners in the new company, she added.

The second step of the agreement could include Singapore Airlines that would buy the Goyal family's stake in a joint venture, which would mean a complete departure for the family.

Jet Airways shares rose 4% on Thursday.

The report said talks between representatives of Tata, Singapore Airlines and Jet Airways management were instigated after US private equity giant TPG Capital withdrew in its talks to buy a stake in Jet.

Singapore Airlines said it did not comment on "speculation."

Jet Airways and Tata Sons did not immediately respond to Reuters' requests for comments. Naresh Goyal and the family were not immediately available for comment.

REUTERS