Jet Airways shareholders approve JetLite merger
Jet Airways on Saturday said that it has received shareholders' approval for the proposed merger of JetLite with itself. The board of Jet Airways had cleared the proposal to merge JetLite, the low-cost subsidiary with itself, in September last year.
"... the equity shareholders of the company have approved the scheme of merger between JetLite (India) Ltd and Jet Airways (India) Ltd and their respective shareholders and creditors," Jet Airways said in a filing to the Bombay Stock Exchange (BSE). The approval was given during a meeting held on Friday.
On March 18, the Bombay High Court had asked the airline to convene a meeting of equity shareholders on April 22 to consider the proposed merger. In this regard, Jet Airways had sought directions from the high court.
The merger would lead to greater efficiency in cash management of the merged entity and "unfettered access to cash flow generated by the combined business which can be deployed more efficiently to maximise shareholder value", according to the airline.
Jet Airways had bought Sahara Airlines in April 2007, for Rs 1,450 crore after an arbitration award. It later renamed Sahara Airlines as JetLite and operated it as a low-cost arm.