Business

Tata Group Likely To Buy Major Stake In Debt-Laden Jet Airways

JAVED SAIFI | 0
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| October 18 , 2018 , 13:30 IST

Tata Group, one of the largest Indian multinational conglomerate has been in talks with Jet Airways to buy a major stake in the company, media reported on Thursday.

According to reports, Tata Group has sought management control with 26 per cent of the initial purchase of stake and 26 per cent via an open letter offer.

Jet Airways is going through a bad face as its financials are not in a good shape amid the rising oil prices and a depreciating rupee.

Also Read: Debt-Laden Jet Airways To Raise Rs 2,000 Crore From NBFCs

Tata Sons Limited, the holding company of Tata Group has already been in the aviation business with operating Vistara and Air Asia.

The deal with Jet Airways is aimed at expanding the network and market share of the company.

In the first week of October, Jet Airways got $35 million from UAE-based Etihad Airways, one of the largest stakeholders in the airline.

The investment of Etihad Airways in the debt-laden airline is aimed at supporting and financially restructuring the airline, however, the Etihad Airways had not disclosed the information that how it will help Jet Airways to overcome the financial crises.

Jet Airways has been in existence for over 25 years.