Nusli Wadia`s GoAir and Madurai-based Paramount Airways are looking at a merger where the former may be open to divesting 40 percent stake to the latter, the Economic Times paper said on Tuesday.
Quoting unidentified sources, the report said Paramount Airways has placed a $100-150 million cash buyout proposal to GoAir.
“The Chennai headquartered premium service carrier (Paramount) could lace it with a stake offer to the Wadias in the merged company,” the report said, quoting sources.
Officials in the companies could not be immediately contacted.
The report said that the Paramount-Wadia deal was still in the works.
Paramount would be looking at funding the deal through a combination of equity placement and debt, it said. It has 24 percent market share in the south and is expected to retire GoAir`s Airbus fleet if the deal went through, the report said.
Source : Zeenews