Airline Code [SHD]
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Air Sahara announced (08-Nov-05) it would shortlist three bidders from a list of eight initial bidders to participate in a INR100 million private equity sale (15-24% of its shareholding), shortly.
Air Sahara had earlier confirmed it would also consider merger/acquisition opportunities with other airlines, while Kingfisher Airlines announced it was considering acquiring the entire shareholding in Air Sahara.
Meanwhile, Kingfisher Airlines confirmed (29-Nov-05) it submitted a bid to acquire 100% of Air Sahara, and stated it is prepared to pay less than USD750 million in cash and stock. Kingfisher Airlines had earlier announced on 15-Nov-05, that it would undertake its own due diligence on Air Sahara, before proceeding with plans to acquire a shareholding in the carrier, stating it did not agree with the valuation of up to INR1 billion recommended by Air Saharas advisor, Ernst & Young.
Funds raised from the sale would reportedly be used to fund Air Saharas fleet expansion plans as recommended in a five-year plan formulated by the Seabury Group, a US based consultancy group, which included the acquisition of 15-20 narrow-body aircraft and lease of five wide-body aircraft for international operations. Bidders so far include:
- Kingfisher Airlines (India);
- Blackstone Capital Partners (USA)
- Carlyle Group (USA);
- Temasek Holdings (Singapore).
Meanwhile, Air Sahara concluded agreements to lease seven B737-800 aircraft, in addition to the six aircraft acquired during the year. The carrier currently operates a mixed fleet of 26 leased aircraft. | 
Air Sahara to short list bidders shortly 
