Jet Airways’ Naresh Goyal to relinquish controlling stake, report

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Founder of Jet Airways, Naresh Goyal, has agreed to sell his controlling stake in the struggling carrier and give up the operational control. Goyal is said to have met all three prospective buyers—Tata Group, Etihad Airways and a consortium of Air France-KLM and Delta Air Lines – television news channel CNBC TV18 reported, citing multiple sources familiar with the matter.

“Goyal has agreed to sell controlling stake in the company to an investor and has communicated the same to three strategic investors they are talking to at this point,” the report quoted the sources as saying.

ALSO READ: Tata Group in talks to acquire a stake in Jet Airways

The report did not say whether a specific buyer was chosen.

Goyal has, however, laid out certain conditions including retaining a minority stake of below 5% and a board seat on the firm, the report added.

The airline’s shares soared nearly 9% on the news. Jet, which is 24 percent owned by Etihad Airways, did not immediately respond to a request seeking comment, said the report.

Jet Airways has not posted a profit for the past 11 years, barring FY16 and FY17, but its costs have been rising and has reportedly not paid staff salaries for an extended period of time.

It has been in talks with with multiple investors for stake sale and raise funds. It was also in talks to sell its loyalty programme Jet Privilege on a stand-alone basis, as it was touted to fetch a high valuation.


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