Air Sahara’s stance about divesting only a minority stake in the company has come under fire as key bidders — Kingfisher Airlines and SpiceJet — allege that the actual size of the stake on sale seems ambiguous and open to interpretation as the information memorandum issued by Air Sahara’s advisors Ernst and Young is totally silent on that front.
Infact, sources close to Kingfisher Airlines, one of the most vocal bidder in the race, inform that, "The information memorandum issued to us does not state the percentage or the size of stake on offer and we infact have independently evaluated the entire enterprise and submitted the same to E&Y. Our valuation figure ofcourse is considerably lower than the one arrived at by E&Y." Echoing the same, SpiceJet director Ajay Singh, said, "Yes, the information memorandum issued by E&Y is extremely silent on the actual size of the stake on sale which very clearly suggests that the company is not just contemplating a minority stake sell but is actively open to a complete sellout of the entire enterprise."
Refuting the same, an official representing Air Sahara, said, "Talks of putting the entire enterprise on the block are all baseless." According to sources a total of ten suitors are in the race, where apart from the two private airlines, Kingfisher Airlines and Spice Jet, eight institutional investors led by Singapore-based Temasek Holdings, Blackstone Capital Partners and the Carlyle Group have put in their bids to acquire a strategic stake in Air Sahara.
Air Sahara on its part has kept "all options open", including selling equity or strategic partnership, to fund its expansion plans.
Infact, sources close to Kingfisher Airlines, one of the most vocal bidder in the race, inform that, "The information memorandum issued to us does not state the percentage or the size of stake on offer and we infact have independently evaluated the entire enterprise and submitted the same to E&Y. Our valuation figure ofcourse is considerably lower than the one arrived at by E&Y." Echoing the same, SpiceJet director Ajay Singh, said, "Yes, the information memorandum issued by E&Y is extremely silent on the actual size of the stake on sale which very clearly suggests that the company is not just contemplating a minority stake sell but is actively open to a complete sellout of the entire enterprise."
Refuting the same, an official representing Air Sahara, said, "Talks of putting the entire enterprise on the block are all baseless." According to sources a total of ten suitors are in the race, where apart from the two private airlines, Kingfisher Airlines and Spice Jet, eight institutional investors led by Singapore-based Temasek Holdings, Blackstone Capital Partners and the Carlyle Group have put in their bids to acquire a strategic stake in Air Sahara.
Air Sahara on its part has kept "all options open", including selling equity or strategic partnership, to fund its expansion plans.