Abu Dhabi-based Etihad Airways submitted an expression of interest to increase its stake in beleaguered airline Jet Airways, three people privy to the development told The Economic Times.
Jet's consortium of lenders, led by the State Bank of India (SBI), has been attempting to get Etihad to buy a majority stake in the homegrown carrier, the report stated.
Etihad owns 24% stake in Jet, ET reported.
According to norms, foreign airlines can't own a majority stake in a domestic carrier; the maximum they can own is 49% holding. In order to buy a majority stake, Etihad will need to partner with another entity.
The development comes after SBI extended the bidding process for Jet's stake sale till Friday.
On Monday, SBI kick-started the process for the stake sale, in which it is looking to hive off 75% of its debt in the carrier.
Sachin Bansal eyes microfinance
Flipkart co-founder Sachin Bansal is in the final stages of discussions to acquire 75% stake for Rs 200 crore ($28.8 million at current exchange rates) in microfinance firm Chaitanya Rural Intermediation Development Services Pvt. Ltd, two persons in the know told The Economic Times.
Separately, The Times of India, citing two people in the know, reported that Bansal may acquire 35% stake owned by investment fund ShoreCap and will invest fresh capital to build Chaitanya’s loan book.
The transaction could value Chaitanya at about Rs 760 crore ($109.6 million at current exchange rates), The Times of India stated, citing individuals from the microfinance industry.
Once the investment is finalised, Bansal could be appointed as the institution’s chief executive officer, the persons mentioned above told ET.
Bansal will likely make the investment through his firm BAC Acquisitions Pvt. Ltd, The Economic Times said.
Bansal set up BAC Acquisitions in December 2018 along with his former IIT Delhi batchmate and investment banker Ankit Agarwal.
In February, Bansal invested Rs 650 crore ($92 million) in his personal capacity in cab-hailing firm Ola as part of its Series J funding round.
He has also been an active angel investor.
ReNew Power, NTPC circle PTC India's wind power biz
Indian renewable energy company ReNew Power Ltd and state-run utility NTPC Ltd are in talks to acquire the wind energy business of power solutions firm PTC India Ltd, a report in Mint stated, citing two persons in the know.
PTC India is in the process of selecting a bidder to sell its wind energy business and expects a valuation of around Rs 2,000 crore ($288.5 million at current exchange rates), the report stated.
Besides ReNew and NTPC, one or two other financial investors could submit bids, one of the persons mentioned above told the business daily.
However, a PTC spokesperson told Mint that it is only considering various options for funding the growth of its subsidiary PTC Energy Ltd (PEL), including getting a suitable strategic investor on board.