Date:23/03/2006 URL: http://www.thehindubusinessline.com/2006/03/23/stories/2006032302710900.htm

Back Jet, Sahara working to complete deal

Our Bureau

Deadline approaches
Both parties working on "structuring the deal" in a manner that it can go ahead despite all the Government clearances not yet having been received.
"There is a possibility that the two parties have to extend the 65-day agreement that expires on March 24 for the deal to be completed. At the moment attempts are being made to see the deal goes through," sources said.

New Delhi , March 22

The acquisition of Air Sahara by Jet Airways is on track with both parties working to see how best to complete the deal, given that all the regulatory clearances have still not been received.

"The deal is on track. Both the principals - the Chairman of Jet Airways, Mr Naresh Goyal, and Sahara Chief, Mr Subrata Roy, are keen that it be completed in the shortest possible time frame," said a source connected with the deal from the start.

The meetings over the past few days at Jupiter House, the official residence of Mr Goyal in Mumbai, have focussed on "structuring the deal" in a manner that it can go ahead despite all the Government clearances not yet having been received.

"There is a possibility that the two parties have to extend the 65-day agreement that expires on March 24 for the deal to be completed. At the moment attempts are being made to see the deal goes through," sources said.

It would also be wrong to say that either of the parties was trying to work out a better deal than what has been agreed to by Jet Airways and Air Sahara, sources indicated.

"There will be a minor balancing act and the final amount to be paid for the buy-out could be about 2 per cent less than the price that was agreed on," sources indicated.

Jet Airways agreed to buy out Air Sahara for an enterprise value of $500 million (about Rs 2,217 crore).

The buy-out agreement, signed on January 19, envisages Air Sahara's entire aviation business, including some aircraft leases, real estate and assets such as auxiliary power units and engines, being acquired by Jet Airways.