'We believe in the deal. This is good for Jet Airways'

NDTV PROFIT/ Q&A: Naresh Goyal

Why did you extend the share purchase agreement with Sahara beyond three months?

I believe that is good for Jet Airways, our shareholders, good for the industry, and good for consumers.

Why do you say that you have got no assurance? What has changed in the last 24 hours?

There is nothing that has changed because we were hoping regulatory approvals will come in 60 days. We now hope approvals will come in 90 days.

Why is that because you almost looked desperate for this deal? We understand there were no assurances, yet you are going out with Rs 2,000 crore?

There is no question of desperation. We believe this is good for Jet Airways.

You got no assurances...

As I said from day one, and I am still saying, this is happening in India for the first time. So I believe the government is coming out with a policy.

So, you have been assured of a govt policy?

No, there is none. You are reading what I presume that the government also understands, everybody understands, that consolidation and mergers are natural and they are happening in every industry.

There was a buzz that you may reduce the price because you are not assured of any rights. Why still Rs 2,000 crore? Do you think shareholders will make money?

Shareholders will definitely make money. Otherwise, I would not have got into it. If we would have thought it was a wrong decision, we would have got out of it. Nobody forced us.

Is there any political pressure?

No, there was no political pressure. I am not guided by politics in my business. I run my business.

What does Subroto Roy's statement mean to you?

Nothing, there is no statement. I am guided by professionals. As far as I am concerned, I am advised by my management team. Since regulatory approvals have not come, we suggested that we extend the agreement for 90 days. So they accepted our suggestion. We mutually agreed.

According to information we have, out of the Rs 2,000 crore, you have actually paid Rs 100 crore to Subroto Roy now. Has any money been transferred?

No, we have agreed to give them an advance out of the escrow account of Rs 500 crore and that is against pledging of 100 per cent shares, which will be in a lien and will lie with ICICI.

When will you release that Rs 500 crore?

After 90 days, depending on the approvals. So there is no problem at all as far as this Rs 500 crore are concerned. This is totally against the SPA.

Have you transferred anything now?

No. It will be given to them as an advance in the next few days.

Any penalty clause now, if the deal falls through?

No, there is no penalty clause.

You have paid Rs 120 crore in the last two months...

We have paid nothing. We gave them Rs 100 crore for working capital of the company. We have not given them a penny, not lost a cent.

So are you paying Rs 500 crore?

Rs 500 crore as advance, against pledging of shares, which will be licensed. If the deal does not go through, the money will not come back.

Rs 500 crore without interest?

Yes, Rs 500 crore without interest.

This amount is coming through your cash accruals, internals. You are not raising any money?

Yes, through internal accruals.

Are you confident that the deal will go through?

I am very sure that the government will look at it because it is very concerned that the industry must be healthy and must grow. I am quite hopeful.

Does the Air India-Indian Airlines merger bother you?

No, I am glad. I think it will be the right thing if the merger takes place. It is good for the country, good for the industry.

You still want sharing of the rights? You want parking, airline rights?

We want to get what is fair and equitable.