Jet buys Air Sahara for Rs 1,450 crore - Video

 Jet Airways has signed a deal to buy all equity shares of Air Sahara for a lumpsum payment of Rs 1,450 crore.

Harish Salve, the legal representative of Jet, said Rs 400 crore has to be paid to Air Sahara before April 20, 2007.

Since Jet has already paid Rs 500 crore to Air Sahara, the remaining Rs 550 crore would be paid in four, interest-free installments commencing on or before March 30, 2008.

According to a release issued by Jet to the BSE today, at the current interest rate, the NPV of the lumpsum price is in the vicinity of Rs 1,200 crore.

Naresh Goyal, chairman, Jet Airways said: "We got a 40% discount to the original price of Rs 2,300 crore. The deal is commercially viable since we are getting a lot of infrastructure and manpower - areas where India is facing a lot of pressure now. The airline business has not changed so dramatically... the deal makes complete economic sense."

Salve added that both the airlines have resolved all pending disputed. "Jet is know for its services and not litigation."

The deal was signed by Saroj Dutta representing Jet and Pallav Agarwal representing Air Sahara.

PTI adds: The deal was signed after the panel comprising British Judge Lord Stein and Supreme Court Justices S P Bharucha and Jeevan Reddy vetted the draft proposal prepared by Jet and Sahara.

 The two later submitted a revised and final proposal to the three-member court-monitored committee, sources close to the development said.

Updated at 1330 hrs: The discussions between officials of Jet Airways and Air Sahara was yet to be concluded with Jet officials trying to talk down the price of the acquistion.

The meeting is expected to conclude around 1400 hrs.

 Updated at 1100 hrs: The formal presentation of the final draft agreement for the merger of Jet and Air Sahara has started.

Earlier, Jet Airways and Sahara Airlines had discussion with the arbitation panel regarding details in the final draft agreement.