NEW DELHI: Jet Airways (India) Ltd on Tuesday termed media reports of Tata Group carrying out due diligence to acquire the airline as “speculative”.
“…The subject news is speculative in nature and that there is no discussion or decision in the board which would require a disclosure…,” Jet Airways said in a response to a clarification sought by the BSE on the matter.
Tata Group is conducting due diligence of Jet Airways as the nation’s largest conglomerate explores the purchase of a controlling stake in the cash-strapped airline, Mint first reported on Tuesday. Saurabh Agarwal, chief financial officer of Tata Sons Ltd, is leading the discussions while Jet Airways is represented by its chairman Naresh Goyal.
“An in-house team of Tata Sons is currently conducting due diligence on Jet Airways, which is expected to continue for the next few weeks,” said one of the two people cited above.
Separately, Jet Airways’s chief financial officer Amit Aggarwal—in the post-earnings analysts call on Tuesday—also termed the Mint report speculative and said that unless something get materialized, the company will not comment.
“We can’t comment on speculations. We have very clearly stated time and again that once something materialises, we will talk it through. Otherwise, we are not commenting on any speculation,” he said.
The cash-strapped airline, in which gulf carrier Etihad Airways PJSC holds 24% stake, is looking to raise funds and has appointed merchant bankers to tie-up with potential investors.
On Monday, Jet Airways reported its third consecutive quarterly losses with a consolidated net loss of Rs 1,261 crore in the September quarter, roiled by higher fuel cost that soared 59%, and a steep rupee fall that led to a sevenfold spike in forex losses.
Source: Press Trust of India