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Government denies approval for Jet Airways-Jet Lite merger

In April 2007, Jet Airways had acquired Sahara Airlines for Rs 14. 50 billion after an arbitration award and the latter was renamed as JetLite

Press Trust of India  |  New Delhi 

Jet Airways faces timing headwinds

on Wednesday said the government has not given approval for the merger of its subsidiary with itself, nearly three years after the proposal was announced by the full

The merger proposal was approved by the board of in September 2015 and was later cleared by the airline's shareholders in April 2016.

In a filing, the said the civil ministry has not approved the merger of Ltd with itself. Consequently, the merger scheme stands revoked and cancelled, it added.

"(India) Ltd and (India) Ltd shall continue their respective operations as two separate legal entities with their respective Air Operator Certificates," the filing said.

The specific reasons for the rejection of approval for the merger could not be immediately ascertained.

was renamed as Jet Lite.

A Jet Airways said it respects the decision of the ministry on the proposed scheme of merger.

In April 2007, Jet Airways had acquired for Rs 14. 50 billion after an arbitration award and the latter was renamed as

The merger would lead to greater efficiency in of the merged entity and "unfettered access to cash flow generated by the combined business which can be deployed more efficiently to maximise shareholder value", the had said in April 2016.

Shares of Jet Airways declined 2.36 per cent to close at Rs 499.80 apiece on the

First Published: Thu, May 10 2018. 01:18 IST
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