BackPE firms approach GoAir to pick up minority stake
PE firms approach GoAir to pick up minority stake
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New Delhi: Wadias-promoted GoAir has been approached by various private equity players for acquisition of a minority stake, while valuing the low-cost private carrier at $400 million (about Rs1,600 crore).
Global consulting firm Ernst and Young, on behalf of other players, has approached the company and Wadias have held discussions with them, market sources said.
When contacted, a spokesperson for the airline said: “E&Y has approached us on behalf of various buyers who are interested in buying a minority stake in GoAir."
Private equity investors who have evinced interest in GoAir have valued the airline at $400 million. Sources said the valuation figure has been tabled by investors during a recently held meeting with the Wadias.
However, the Wadias have not made any firm decision with regard to the proposal from PE investors, sources added.
Earlier, GoAir’s managing director Jeh Wadia had said that the airline has been receiving various equity proposals from PE investors and high networth individuals.
The GoAir management has been considering these proposals, but a decision is yet to be arrived at on these discussions.
GoAir is also charting a major expansion plan and has started receiving the deliveries of the $1.2 billion order it had placed with Airbus last year.
Two aircraft were delivered at the end of 2007 and the company is currently considering a second deal for an additional 21 aircraft.
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