Chillin' out till it needs to be funded
Jet Airways reportedly plans equity sale to Temasek, and Rs 1,000 crore debt from UAE Fund.
Jet Airways, the country's largest airlines, is desperately seeking funds as losses continues to pile up with dropping air traffic and higher operating costs. While it is reportedly (The Economic Times) in talks with Temasek to sell 10% stake it appears that the airlines is also seeking loans from overseas entities to keep the business running. Acoording to Mint and Business Standard reports, Jet is in talks with Mubadala Development Co, an investment firm of the emirate of Abu Dhabi, for a Rs 1,000 crore(~$210 million) loan to meet working capital and other expansion needs.
The Temasek deal being negotiated is believed to be worth around Rs 250 odd crore which values the airlines at Rs 2,500 crore, much higher than its current market cap of Rs 1,680 crore.