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Valuation of Sahara too high, says Mallya

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Our Corporate Bureau Mumbai
Kingfisher Airlines Chairman Vijay Mallya today said that he did not buy Air Sahara as it was loss-making airline and the valuation was too high.
 
"Jet Airways chief Naresh Goyal is an experienced hand. But I don't know why he agreed to pay such a high price," he added.
 
Mallya, who was also in the race to acquire Sahara, but backed out at the last moment, said he was familiar with mergers and acquisitions as was evident from the UB Group's recent acquisition of Shaw Wallace. "But don't expect me to pay an illogical price."
 
Mallya said the acquisition of Air Sahara was expected and it would not affect his Kingfisher Airlines as it was doing "well".
 
The combined entity might have a market share of more than 50 per cent, but he was not concerned about it. "I am more concerned about the airports and the infrastructure. With this acquisition, Jet airways may get more parking slots and more aircraft. The government should look into sorting out infrastructure issues," he said.
 
PTI adds: The Monopolies and Restrictive Trade Practices Commission (MRTPC) today said the takeover of Air Sahara by Jet "does not appear" to warrant any immediate probe, though it would "look into" various aspects after the deal is formally sealed.
 
"It does not appear to warrant any immediate probe as there seems to be no threat of any monopolistic or restrictive practice following the takeover," MRTPC chairman B K Rathi said.
 
"The market share does not mean anything," Rathi said in relation to Jet commanding about 45 per cent market share.

 

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First Published: Jan 21 2006 | 12:00 AM IST

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