“Tata Sons chairman N Chandrasekaran is expected to present the board on Friday (November 16) a business viability plan on the proposed acquisition of the struggling Jet Airways,” The Times of India report suggests.
According to an Economic Times report on Thursday, Tata SIA Airlines, Vistara's parent, is eyeing an all-stock merger with Jet, founded by entrepreneur Naresh Goyal who has a 51% stake. Etihad Airways has a 24% stake in Jet. Tata and Jet are inching towards a two-step transaction that would first see Jet merge with Tata SIA through a share swap, the report said, citing sources. CLICK HERE TO READ FULL REPORT
The stock rallied 105% from its 52-week low level of Rs 163 touched on October 1, 2018 on the BSE in intra-day trade, as compared to 3.5% decline in the S&P BSE Sensex. It touched a 52-week high of Rs 884 on January 5, 2018, on BSE in intra-day deal.
Jet Airways, however, termed media reports saying 'Tata SIA Airlines eyes all-stock merger of Vistara with the airline' as "speculative".
Jet Airways said on Wednesday that the board of directors of the company in its meeting held on August 27, 2018, had considered various cost-cutting measures, debt reduction and funding options, including infusion of capital, monetization of assets and sale of company's stake in its Loyalty program. These measures also include carrying out a sale and subsequent leaseback of its finance leased aircraft, it added.
Jet Airways finally settled 24.5% higher at Rs 321 on the BSE, as compared to 0.34% rise in the Sensex today. The trading volumes on the counter jumped five-fold with a combined 53.43 million equity shares changed hands on the BSE and NSE.