Jet to pay Rs 950 cr in cash for Air Sahara deal
Naresh Goyal controlled private carrier Jet Airways will have to pay a total of Rs 950 crore in cash.business Updated: Apr 10, 2007 22:44 IST
As part of the revised deal to buy out Air Sahara, Naresh Goyal controlled private carrier Jet Airways will have to pay a total of Rs 950 crore in cash.
Putting an enterprise value of Rs 2,050 crore for Air Sahara, Jet is understood to have worked out a deal wherein as much as Rs 600 crore is expected to be adjusted as arrears, interest and other liabilities.
The deal would, however, not include the fixed assets as also the helicopters.
Jet has already paid Rs 180 crore to provide liquidity to Air Sahara, which is also expected to be the part of the adjustments worth Rs 600 crore.
Of the remaining Rs 1,450 crore, Jet has already paid Rs 500 crore as advance in lieu of the shares pledged by Sahara last year.
While there was no official confirmation from either side about the financial details of the deal, sources said that a creditor's deduction of over Rs 200 crore is not being accepted by Jet, which is the reason behind the drop in Air Sahara's enterprise value from about Rs 2,300 crore, worked out when the deal was first struck, to Rs 2,050 crore now.