The Hinduja Group is non-committal but will keep its options open
Etihad Airways, the second-largest shareholder in Jet Airways and other lenders to the airline have reportedly approach UK’s Hinduja Group for a stake sale.
“The Hinduja Group has so far not given a clear commitment about investing in Jet, but began showing interest after Etihad representatives approached GP Hinduja, the elder brother, who heads the group. The senior Hinduja, in turn, put Etihad in touch with Ashok Hinduja, the younger brother, who leads the India business,” reported Economic Times.
Indian-born industrialist brother, Sri and Gopichand Hinduja, last week reclaimed the title of Britain’s wealthiest by posting fortunes of 22 billion pounds to their name. The industrialist brothers posted a 1.35 billion jump in their fortunes to rank at the top of The Sunday Times Rich List 2019. They had secured the number one rank back in 2014 and 2017. The London-based industrialist, along with UK-based brother Sri, 83, and their brothers Prakash, 73, and Ashok, 68, who live in Geneva and Mumbai respectively, control more than 50 companies with a total turnover of nearly 40 billion pounds worldwide in 2018, the Rich List said. The Hindujas also own Ashok Leyland, India’s second-largest truck maker by sales.
In 2001, the Hinduja Group bid for Air India, 40% of which was up for sale. They had also bid for 26% in Indian Airlines The consprtium comprising of Ashok Leyland, Hinduja Finance Corporation and an overseas corporate entity, Machen Development Corporation, had put in bids for the two airlines but the stake sales did not take off. The group is reportedly also keen on Air India’s disinvestment plan.
Jet, once the biggest private carrier in the country, owes vast sums to its lessors, employees, fuel suppliers and other parties. It stopped all flights from April 17 after its lenders refused to give it any more funds to keep the carrier flying. The chances of its revival appeared bleak without any sign of a majority partner, and with the exit of key officials and a large number of its fleet going to rivals…
