GoAir denies move to sell stake to Paramount

October 4th, 2009 - 9:37 pm ICT by IANS  

New Delhi, Oct 4 (IANS) Low-cost carrier GoAir Sunday said it wasn’t looking at offloading stake as reported in the media, and that it was concentrating on fleet expansion.
“The airline has been receiving a number of proposals for investment in the airline which is a testament to the shareholder value being created,” GoAir managing director Jeh Wadia said in a statement.

“The decision taken by the board of the company is not to proceed with any such proposal and focus on its business plan of inducting to its existing brand new fleet of eight aircraft another 12 aircraft, completing its order of 20 Airbus which the company bought in 2007 for $1.2 billion,” Wadia said.

The statement followed reports over the weekend that Paramount Airways, based in Chennai, would acquire GoAir in a cash-and-stock deal.

The report said GoAir’s promoters would receive a cash payment of Rs.100-150 crore apart from a stake of 7-8 percent stake in Paramount.

“In the light of recent speculative press reports, GoAir refutes any contact with Paramount Airlines and refuses to comment on market speculation,” the Wadia-headed carrier said.

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