Saturday, February 3, 2007

Go Air to divest 26% stake to Gatx Corporation, Wellington Management

Low cost carrier Go Air, owned by the Wadia Group, is in talks with to private equity firms for divesting as much as about 26% stake. Go Air may sign a deal with Chicago-based Gatx Corporation and Boston-based Wellington Management fir offloading 26% stake in the company. The valuation of Go Air is pegged at around Rs. 400 crores.

The Gatx Corporation, through its arm Gatx Air, is into leasing narrow-body aircraft to commercial airlines worldwide. Gatx Air owns 150 aircraft, 46 owned and ownership interest in 104 aircraft through joint ventures. Wellington Management holds significant equity in several global airlines including US Airways, Northwest Airlines, and Continental Airlines besides equity stake in AMR - the parent company of American Airlines. Go Air has had discussions with Jet Airways as well for an equity stake sale.

Read the article on ndtvprofit.com.
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