Date:21/06/2006 URL: http://www.thehindu.com/2006/06/21/stories/2006062109001800.htm

Business

Jet still awaits clearance

Special Correspondent

Deadline for escrow account deal set to expire

NEW DELHI: Jet Airways, locked in a Rs. 2,300-crore deal to acquire Air Sahara, said on Tuesday that it was still awaiting all regulatory approvals and the fulfilment of all conditions to put the final seal of approval on one of the biggest deals in the country's corporate history.

The deadline for the closure of escrow account, which is barely a day away, and the pending security clearance from the Government to Jet Airways Chairman Naresh Goyal for appointment to head the post-acquisition new corporate entity were the two key factors, weighing heavily on the mind of the Jet management, informed sources said.

Reacting to media reports speculating on the status of the share-purchase agreement between Jet and Sahara, a brief statement issued by Jet Airways said it was still awaiting all regulatory clearances from the government.

Sources in the aviation industry were of the opinion that the evaluation of Air Sahara was highly overvalued and Jet did not stand to make substantial gains from the deal.

Jet has already made an upfront payment of Rs. 500 crore and if the aviation industry sources are to be believed, Jet management seems to be keen to make an honourable exit from the deal.

Meanwhile, sources in the Home Ministry said that a meeting, to be presided over by Home Secretary V. K. Duggal, was being held on Wednesday to review the issue of security clearance to Mr. Goyal.