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Jet Airways hits lower circuit as Anil Agarwal’s family trust withdraws EOI

With Volcan pulling out, only two entities are left in the fray to buy stake in the airline.

ETMarkets.com|
Last Updated: Aug 13, 2019, 11.05 AM IST|Original: Aug 13, 2019, 11.05 AM IST
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Shares of Jet Airways hit lower circuit on Tuesday after Volcan Investments, the investment company of Vedanta Chairman Anil Agarwal, on Monday said it will not pursue the Expression of Interest (EoI) submitted for the debt-ridden airline.

The scrip declined 4.91 per cent to Rs 44.55, while the benchmark BSE Sensex was down 140 points, or 0.37 per cent, at 37,444 at around 10.30 am (IST).

“The EoI for Jet Airways by Volcan was exploratory in nature. On further evaluation and considering other priorities, we intend to not pursue this further,” Agarwal said in a statement.

With Volcan pulling out, only two entities are left in the fray to buy stake in the airline.

Etihad which holds 24 per cent stake in Jet Airways, also stayed away from participating in the second round.

In a statement, Etihad Monday said it has declined to submit an EoI to reinvest Jet Airways because of the unresolved issues concerning the airline's liabilities.

In April, Etihad had presented a conditional expression of interest to reinvest in Jet as a minority stakeholder, with a partner, but it did not materialise.

“We remained engaged in the process, but despite the endeavours of everyone involved there remained very significant issues relating to Jet's previous liabilities. Regrettably, in these circumstances, it was neither feasible for nor responsible on our part to reinvest in Jet at this time," the UAE flag carrier said.

(With inputs from Agencies)

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