Monday, July 03, 2006

GoAir to sell 15% stake to strategic investors

Mumbai: Nuslia Wadia-promoted low-cost carrier GoAir is offloading 15% equity in favour of strategic investors for an estimated Rs 95 crore.
JM Morgan Stanley, roped in as advisers for the stake sale, has valued the airline at Rs 650 crore, sources close to the development told FE. GoAir has received a few offers from private equity firms as well as local investors, but the airline is yet to take a final decision. GoAir executives refused to comment on the development.
Sources also said, Reliance Industries Limited (RIL) chairman Mukesh Ambani was also in talks to buy a part of the stake, although this could not be confirmed. Coimbatore-based Paramount Airways is the other airline that recently divested 10% stake in favour of India Growth Fund of the Kotak Mahindra group for Rs 70 crore. Sources believe GoAir will use the funds from the stake sale to expand its fleet.
02/07/06 Sagar Malviya & Neelasri Barman/Financial Express