SBI sets terms for Jet Airways sale

Maximum stake on offer is 75% in the cash-strapped airline; last date for receipt of EoI is April 10

State Bank of India (SBI) on Monday invited bids from strategic and financial investors for stake sale in the cash-strapped Jet Airways.

SBI, the lead bank of the consortium of lenders of Jet Airways (India) Ltd., has offered bidders a maximum of 75% stake (8,51,98,037 shares). The minimum stake on offer is 31.2% (3,45,42,383 shares).

SBI Capital Markets Ltd., on behalf of the SBI, has invited expression of interest (EoI) for a change in control and management of Jet Airways. The last date for receipt of EoI is April 10.

Selected bidders are required to submit binding bids by April 30, 2019.

A competitive bidding process would be followed for identification of a suitable investor to acquire ownership of the company on as-is where-is basis.

The winning bidder is expected to settle the obligations of the company in relation to existing bank loan facilities.

EoIs had been invited from individuals, including foreign nationals, trusts, cooperative societies, private limited companies, public limited companies, partnership firms and sole proprietorships. Bidders can be strategic investors (SIs) or financial investors (FIs).

In the event of a bidder not being a consortium, the SI bidder should have a minimum net worth of ₹1,000 crore in the immediately preceding financial year or have funds available for investment in Indian assets of ₹1,000 crore or more or a minimum of three years of experience in the commercial aviation business.

If the bidder is an FI, then it should have minimum assets under management of ₹2,000 crore in the immediately preceding completed financial year or committed funds available for investment in Indian assets of ₹1,000 crore or more.

A consortium that may bid would consist of not more than three members with a shareholding of an individual member not being less than 15%. There must be a lead consortium member to take decisions.

Access to data

After the conclusion of the EoI stage and following execution of a non-disclosure agreement (NDA) and payment of bid access fee, the qualified bidders would be provided access to the data room to provide information about the company.

Interested parties are expected to submit a preliminary term sheet providing an indicative valuation for 100% equity share capital of the company and settlement of all obligations of the company.

Jet Airways

Jet Airways