Mumbai-based budget carrier GoAir has been approached by Ernst & Young on behalf of its clients for picking up around 28 per cent equity stake in the airline. | |
| The carrier, which is owned and promoted by Jeh Wadia, has been valued at $314-400 million by private equity investors. At 28 per cent, the value of the proposed investment is expected to be $88-112 million. |
| |
| "E&Y has approached us on behalf of various buyers who are interested in buying a minority stake in GoAir," GoAir said, without naming the investors. |
| |
| According to sources close to the deal, in all likelihood, there are three buyers - a global venture capitalist, an Indian corporate and an India-based global private equity investor. |
| |
| On being asked about the exit mode for the potential investors, the source said, "The airline is planning to get listed next year." |
| |
| There are some analysts who believe that the airline has been over valued at $400 million, but sources say considering low-cost carrier SpiceJet's valuation of $560 million, GoAir was not over priced. |
| |
| Air Deccan, another low-cost carrier, has been valued at a billion dollars, leveraging its merger with Kingfisher Airlines. |
| |
| GoAir plans to use the proceeds for expansion of fleet and strengthening its network. At 2007-end, the airline received deliveries of the $1.2 billion order it had placed with Airbus. GoAir is also considering a second deal for additional 21 aircraft. It plans to have a fleet of 41 aircraft by 2012. |
| |
|
| |
