Tuesday, September 29, 2020

Synergy Group Signs NDA, Likely To Acquire Major Stake In Jet Airways

  • This is the first formal step to acquire the Indian airline and also indicates that the company is a serious bidder for Jet’s assets. The Synergy Group is the first company to sign an NDA so far.
  • One of the recent bidders to acquire Jet Airways, Synergy group has signed a Non-Disclosure Agreement (NDA) with the person involved in the resolution of Jet Airways.

One of the recent bidders to acquire Jet Airways, Synergy group has signed a Non-Disclosure Agreement (NDA) with the person involved in the resolution of Jet Airways. The South American conglomerate group is looking at a minimum of 49 percent stake in Jet Airways.

This is the first formal step to acquire the Indian airline and also indicates that the company is a serious bidder for Jet’s assets. The Synergy Group is the first company to sign an NDA so far.

In order to get access to the data room signing a Non-Disclosure Agreement is mandatory. Data Room consists of all the important documents related to the company on the block which includes contracts for aircraft, agreements with the vendors, employee information and other financial data. Synergy will be allowed some time to go through all the documents as part of the due diligence. As soon as this process is done, the company will place a financial bid to acquire the assets.

A few weeks back, the South American company expressed its interest in buying Jet Airways and earlier this week they signed the NDA.

Synergy is the majority stakeholder in Avianca Airlines which is the second-largest airline in South America. It also has a code-share partnership with Air India under which it shares the specific flight details.

Although, the airline is yet to deposit the mandatory access fee. As it is known, it is necessary for the potential bidder to submit the fee in order to get access to data room but Jet has very few prospects that’s why the lenders have waived off the deposit fee. The signing of the agreements clearly indicates the company is serious about the acquisition.

Synergy is eyeing at least 49 percent stake in the airline. Synergy is expected to ask for a 60-80 percent haircut from the lenders of Jet Airways as it was the pre-condition to pick the equity in the airline. The company can also ask the lenders to convert 10-20 percent of their total debt in equity.

This revival plan includes downsizing of the current workforce of 14,000 employees to 7,000 employees.

The founder of Synergy Group German Efromovich is likely to meet the lenders of Jet Airways and Civil Aviation

As part of the plan to revive the airline, there could be a demand for downsizing the workforce from the current 14,000 employees to 7,000.

Synergy Group’s founder German Efromovich is likely to meet Jet lenders and Civil Aviation Ministry officials during a visit scheduled for September 15.

With Synergy group showing such interest, we hope that Jet Airways is revived.

Pritish raj

Pritish raj

Pritish Raj is a content writer at Next Big Brand. Hailing from the diversified state of Bihar, he is an engineer by education who chooses the way of poetry, photography, and writing to kick off his career. Highly enthusiastic about brands and startups, he aims to be a travel content creator.

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