ZCZC
BCN-21
INDIA-BRITAIN-ECONOMY-AVIATION-JET-HINDUJA
Britain’s Hinduja brothers consider bid for India’s Jet Airways
MUMBAI, May 22, 2019 (BSS/AFP) – The billionaire Hinduja brothers —
Britain’s wealthiest people — are considering a bid for India’s grounded Jet
Airways, a spokesperson said Wednesday, sending shares in the firm soaring
almost seven percent.
Saddled with debts of more than $1 billion, Mumbai-based Jet has been in a
tailspin for months, defaulting on loans and failing to pay many staff and
aircraft leases, forcing it to suspend operations last month.
The firm’s main lender, State Bank of India (SBI), is seeking to sell a
majority stake and has received two unsolicited bids and a conditional offer
from Etihad Airways of Abu Dhabi.
Etihad already owns a 24 percent share and says it will inject funds to
maintain its stake if a majority shareholder can be found.
Indian business dailies reported Wednesday that the Hinduja Group — led
by London-based brothers Sri and Gopi Hinduja — had held talks with Etihad,
separately telling AFP: “Hinduja Group is evaluating the Jet Airways
opportunity.”
Shares in Jet, which have almost halved over the past six months, soared
6.97 percent on the Bombay Stock Exchange Wednesday, a day after rocketing 15
percent on the back of early reports of the move.
SBI refused to comment on the Hinduja Group’s interest while Etihad was
not immediately available for comment.
Thousands of jobs are at risk if Jet goes under and employees protested in
New Delhi Tuesday, calling for a government rescue of the airline.
The Hinduja Brothers topped Britain’s annual Sunday Times rich list
earlier this month with a fortune of o22.0 billion ($28.6 billion).
Their sprawling conglomerate includes interests in power, oil and gas,
banking, and healthcare.
BSS/AFP/HR/1435