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Jet Air jumps 5% as Hinduja brothers likely to bid for airline

NEW DELHI: Shares of Jet Airways climbed 5 per cent in Tuesday’s trade amid reports that Hinduja Group is preparing a bid to buy the grounded carrier.

According to a Bloomberg report, Gopichand Hinduja and Ashok Hinduja led group is planning to submit an expression of interest (EOI) by January 15 deadline. The EOI will signal the UK-based group’s intent to make a formal offer, the people said, asking not to be identified as the deliberations are private.

Hinduja is seeking a partner to bid, one of the people told Bloomberg.

Hinduja Group had earlier this year considered bidding for Jet Airways in partnership with Etihad, but Etihad jettisoned the proposal and Jet Airways was tipped into bankruptcy.

Following the report, the stock jumped 4.96 per cent to hit a high of Rs 29.60 on BSE.

Synergy Group, the sole potential bidder for Jet Airways, has sought more time to take a decision on investing in the grounded airline. The airline in a regulatory filing last week told exchanges that the Committee of Creditors (CoC) would seek fresh Expression of Interest (EoI). Earlier this month, the National Company Law Tribunal (NCLT) had directed the CoC to expedite their decision on seeking fresh EoIs in view of new interest being shown for the grounded airline.

Once a storied full-service carrier, Jet Airways stopped flying in April after it ran out of money for daily operations. The airline is undergoing resolution process under the Insolvency and Bankruptcy Code (IBC).

State Bank of India & Punjab National Bank have claimed $1.2 billion, while other creditors, like employees and lessors, are seeking Rs 6,400 crore from the airline, which is 24 per cent owned by Abu Dhabi’s Etihad Airways PJSC.

Source: Economic Times