Date:18/01/2006 URL: http://www.thehindubusinessline.com/2006/01/18/stories/2006011803020100.htm

Back Jet-Sahara deal likely by weekend; snags over cricket sponsorship

Our Bureau

New Delhi , Jan. 17

THE buyout of Air Sahara by Jet Airways is likely to be concluded by this weekend, provided the two sides can resolve some glitches that have cropped up along the way. One such issue is the sponsorship of the Indian cricket team by the former.

"The buyout move is at an advanced stage. It is possible that a decision is reached before the board meeting of Jet Airways although the item is not listed," sources familiar with the development told Business Line.

The Jet board is scheduled to meet in Mumbai on January 21 and lawyers from both sides are holding hectic parleys to seal the deal, the sources said.

Last month Air Sahara won the right to sponsor the Indian cricket team for the next four years for Rs 313.80 crore. Sources said that the balance sheet of the airline company was submitted during the bidding process and this could turn into a liability for the acquiring company.

Officials in investment banking circles said that since Jet was not very keen on sponsoring cricket, it was unlikely to pick up the cricket tab. But the sale of the airline would not create problems for the team sponsorship. Officials of the Board of Control for Cricket in India maintain that the logo of any other Sahara group company could be used, and the deal was not restricted to Air Sahara alone.

Another hitch in the buyout negotiations is said to be indications from Government sources that any sale would not mean an automatic transfer of flying rights.

Meanwhile, speaking to newspersons in Indore, the Chairman of Jet Airways, Mr Naresh Goyal, confirmed that the two airlines were in talks. However, he added that the deal would be finalised only if it was found to be beneficial for shareholders.