Jet Airways gets two suitors as EoI deadline ends, Hindujas back out

South America-based Synergy Group and Delhi-based Prudent ARC have submitted expressions of interest (EoIs) for the revival of Jet Airways. The deadline for the submission of EoIs ended on Wednesday. Sources said the Hinduja Group had explored investing in the beleaguered airline, but backed out later because it found no value. A Dubai-based fund, too, had evinced interest in investing in the grounded airline, but did not submit an offer.

                                  This is the second time that the lenders to Jet called for EoIs. The first round of bidding did not result in any resolution plan for the revival of the airline. The lenders gave ample time to prospective suitors by extending the deadline time and again.

                              Shares of Jet were locked in the 5-per cent upper circuit for a twelveth straight day, at Rs 50.25 on the BSE, on Wednesday. The stock was trading at its highest level since July 18, 2019. With Wednesday’s gain, the stock price of Jet has jumped threefold, up 233 per cent in less than three months, from its record low level of Rs 15.10 hit on October 22, 2019.

                          Synergy Group, one of the suitors, has said slots at London’s Heathrow airport are critical to the airline’s operations and will decide on participating in the resolution only if it gets clarity. The group has also set other riders to revive the airline. It wants to form a new company with its assets, employees, and operating permit but minus all liabilities. As of now, Synergy Group has not found an Indian partner who will take majority control of the airline. Central government norms cap foreign investment in the airline at 49 per cent.

On its part, the civil aviation ministry has said it will decide on returning domestic slots to Jet on submission of a concrete business plan. Jet’s Chief Strategy Officer Rajesh Prasad said investment in the airline would be attractive under the insolvency framework. “There is significant embedded value in the aircraft and the new owner will also get inventory and spares,” said Prasad.

Jet shut operations on April 17 last year. It was admitted under the insolvency process in June. EoIs have been invited twice and the bid submission deadline extended, but there is no resolution plan from suitors as yet.