Jet pays Rs 400cr to Air Sahara, deal closed

Jet Airways today paid Rs 400 crore to the promoters of Air Sahara, closing the deal for the Naresh Goyal-promoted airline's takeover of the Lucknow-based ailing carrier.

The April 20 deadline was set by an arbitration panel. Jet officials have already started visiting the offices of Air Sahara as part of the amalgamation process, sources said.

After nine months of bitter legal battle, the grounded Jet-Sahara deal finally took off earlier this month after Jet agreed to buy the Lucknow-based airline at a "lump sum price" of Rs 1,450 crore.

Goyal had described the deal as a 'win-win' for both parties. The deal, he had said, was "40 per cent cheaper than the one (Rs 2,300 crore deal) signed last year". The three-member arbitration panel had approved the revised offer.

Under the renewed offer approved by the arbitrators, all shares of Air Sahara will be transferred to Jet for Rs 1,450 crore inclusive of Rs 500 crore Jet had paid last year.

Jet has to pay the remaining Rs 550 crore in four interest-free annual equal instalments starting March 2008.