As per news reports, Tata Group may be on its way to purchasing Jet Airways. The group is showing due diligence in the process. Both Naresh Goyal of Jet Airways and Saurabh Agarwal, chief financial officer of Tata Sons Ltd, requested that the discussions be kept private.
The cash-strapped airlines had been approaching potential investors, including Tata Group to sell a significant stake in the airline. Tata showed interest and a deal was made on condition that Goyal retains operational control of the country.
While no official confirmation has been made, according to sources, things have moved fast since then and Goyal has agreed to cede control to Tatas, conditional to how much premium Tata is willing to pay Goyal to give up control and whether he will continue in some capacity.
Fresh funds could change the airline's shareholding pattern. Previously, Jet Airways has suggested in the past that it is open to infusion of funds from external sources. Tatas are also keen to acquire Jet's stake in Jet Privilege, the airline's loyalty programme.
According to reports, previously, potential investors like Blackstone Group LP and TPG Capital were eyeing a stake in Jet Privilege, but started having second thoughts due to the airlilne's financial health.
Tata already has a presence in aviation through budget airline AirAsia India Pvt. Ltd and full-service carrier Vistara, a joint venture with Singapore Airlines Ltd.
