NEW DELHI: IndiGo promoter Rahul Bhatia’s InterGlobe Enterprises (IGE) on Friday said it has signed an agreement to bid for the bankrupt Virgin Australia. The carrier had announced bankruptcy on April 21 in the wake of the coronavirus pandemic, after the Australian government rejected its plea for a loan of A$1.4 billion.
“As regards Virgin Australia, InterGlobe Enterprises has signed an agreement to participate in the sale process and is bound by the confidentiality requirements of that agreement. We are unable to say anything further at this stage,” IGE said in a statement.
IGE is the largest shareholder in IndiGo. The company and Rahul Bhatia’s associates hold 37.87 per cent stake in IndiGo, while his estranged partner Rakesh Gangwal and family hold about 36.64 per cent. The two promoters have been locked in a bitter tussle after Gangwal alleged issues with Related Party Transactions (RPT) and misgovernance.
Experts say if IGE acquires Virgin Australia and merges its operations with IndiGo, the latter will become a dominant player in the Asia-Australia region.However, InterGlobe Aviation Ltd, the parent firm of IndiGo, stated that it has not formulated any indicative proposal or expressed any interest in Virgin Australia.
“It is further submitted that as per the aforementioned news report, ‘InterGlobe Enterprises’ has confirmed its interest in Virgin Australia. InterGlobe Enterprises Private Limited is a separate legal entity and is a shareholder in the company. The company is not party to or involved in any proposal of InterGlobe Enterprises Private Limited in relation to the sale of Virgin Australia,” InterGlobe Aviation said.