Amid talks with Air Sahara for a possible takeover or strategic alliance, private carrier Jet Airways on Friday announced holding its board meeting on January 21 to discuss raising external/internal resources through equity placement or debts.
Contrary to reports that the meeting could be held on January 30, the board, which would also consider third quarter results, would meet earlier amid speculations that its discussions with Air Sahara could reach a definitive stage by January 15.
Jet says Sahara talks still on
The board meeting would also decide on convening an extraordinary general meeting, a move that industry observers feel could be a precursor to the deal between the two private carriers, which would help Jet increase its market share to 50 per cent or more in the competitive Indian skies.
In its notice to the stock exchanges, Jet said the meeting of the board would consider whether the "company should make an equity or debt-related offering in the nature of American Depository Receipts, Global Depository Receipts, Foreign Currency Convertible Bonds or any other securities in India."
The EGM, if convened, would be to seek shareholders approval.
Apart from resource mobilisation efforts, the board meeting would also consider the third quarter financial results, the notice said.
The move assumes importance in the wake of Jet's nearly $3 billion investment commitment for fleet expansion and modernisation, besides commitment for a possible takeover of Air Sahara for an estimated Rs 2,000 crore (Rs 20 billion) along with liabilities of Rs 600-700 crore (Rs 6-7 billion).
Informed sources said that Jet chief Naresh Goyal and Sahara supremo Subroto Roy are expected to meet on January 14 either at Mumbai or Lucknow for possibly taking forward the discussions to a conclusive stage.
When contacted, Jet's executive director Saroj Dutta said the purpose of the board meeting was clearly informed to the Bombay Stock Exchange.
On whether the resources were being generated for the proposed deal for Sahara, Dutta declined to comment saying: "I have nothing further to add."
Sahara spokesperson was also not available for comments.
