Naresh Goyal to Sell Controlling Stakes of Jet Airways

Naresh Goyal to Sell Controlling Stakes of Jet Airways

Shares of India’s Jet Airways Ltd rose sharply following a report that founder Naresh Goyal has agreed to sell his controlling stake and give up operational control of the struggling carrier. Although Goyal has been reluctant to relinquish his controlling stake in the 25-year-old airline, he is said to have met all three prospective buyers – Tata Group, Etihad Airways and a consortium of Air France – KLM and Delta Air Lines Inc, television news channel CNBC TV18 reported, citing multiple sources familiar with the matter.

“Goyal has agreed to sell controlling stake in the company to an investor and has communicated the same to three strategic investors they are talking to at this point,” the report quoted the sources as saying. The report did not say whether a specific buyer was chosen.

Goyal has, however, laid out certain conditions including retaining a minority stake of below 5 percent and a board seat on the firm, the report added. The carrier`s financial woes have been worsened by rising crude oil prices and intense pricing competition in the domestic aviation industry.

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