Shares of SpiceJet jumped nearly 8% to hit a fresh 52-week high of Rs 69.20 on Tuesday after the budget carrier expressed its interest to acquire Go First. The company plans to submit its offer after carrying out due diligence on the bankrupt carrier.
In a notification to the exchanges on Tuesday, the airline said it has, “expressed interest with the Resolution Professional of Go First and wish(es) to submit an offer post diligence, with a view to creating a strong and viable airline in a possible combination with SpiceJet.”
Go First has remained grounded since May. The airline has a fleet of 54 Airbus SE A320neos. The no-frill carrier has filed for voluntary bankruptcy proceedings amid financial woes, mainly triggered by Pratt & Whitney engine issues.
The lenders to Go First plan to scout for litigation finance to bring home up to Rs 12,000 crore tied up in various lawsuits, as the bankrupt airline stares at likely liquidation. The amount includes an arbitration award that it won against engine maker Pratt & Whitney at the Singapore International Arbitration Centre (SIAC) earlier this year, as well as several other lawsuits under way.
Earlier, Jindal Power had emerged as the potential buyer for the airline, but the deal fell through.
Last week, the board of SpiceJet approved raising over Rs 2,250 crore through a preferential issue of shares and warrants, in a fresh lifeline for the low-cost airline battling multiple creditors and lessors.
Apart from SpiceJet, Sharjah-based aviation firm Sky One and Africa-focussed Safrik Investments have reportedly also shown interest in acquiring Go First.
Go First (previously known as Go Air), set up in 2005, is part of the Wadia group.
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