Jet takes over Sahara for $338 million

Thursday, 12 April 2007, 07:00 Hrs
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Mumbai: India's largest private airlines Jet Airways inked a deal to take over its smaller rival Air Sahara for 14.5 billion ($338 million*), making it the largest air operator in the Indian domestic aviation sector.

"Jet Airways today signed a renewed deal to take over all the shares of Air Sahara after the offer received the sanction of the three-member Arbitration Panel," a Jet Airways spokesperson here said.

Sources said the renewed valuation of the Air Sahara has been pegged at 20.50 billion, of which 6 billion is expected to be liabilities and arrears.

Of the remaining 14.5 billion, Jet has already paid 5 billion as advance in lieu of the promised shares of Sahara. It will pay the remaining 9.5 billion in five interest free installments.

"Jet Airways has already paid 5 billion and it will pay another 4 billion by April 20," said a spokesperson. "The balance amount will be paid in four interest free installments between March 2008-2011," she said.

*Considering $1 = 43
Source: IANS
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