Silverjet subject of takeover battle

Silverjet is the subject of a takeover battle, with three Middle East companies among the investors vying to acquire the UK-based business-class airline, according to its CEO.

Lawrence Hunt said the airline has had "a number of discussions" with investors from the Middle East and Asia, but would not reveal which companies it is in talks with, UAE daily Emirates Business 24/7 reported.

"We have had a number of discussions with a number of investors in the Middle East and Asia for a potential takeover. Of this, three Middle East companies have approached us for a complete takeover," Hunt told the newspaper.

A deal could be finalised in the next couple of months, the paper said, citing industry sources.

Hunt's comments come a week after a mystery UAE investor gave the loss-making airline a much-needed $25 million cash injection, which could be followed by a further $75 million, Silverjet said.

RELATED: Silverjet saved by mystery UAE backer

Silverjet, which flies from London to Dubai and New York, is the last-remaining business-only airline following the recent collapses of Eos and Maxjet due to challenging market conditions and a business model that analysts have questioned the viability of.

RELATED: Second business class carrier goes bust

Silverjet has vigorously defended its business strategy and said it is in a strong financial position. However, it failed to make an operating profit for its fiscal year ending March 31.

In January Silverjet shares plunged 28% after a broker said the airline was "likely to fail" and gave its shares a target price of 0 UK pence.

RELATED: Silverjet denies it is 'likely to fail'

Mike Stoddart, of Daniel Stewart Securities, said in an analyst’s note that Silverjet’s fares structure had failed to generate enough passengers to make money and that he expected the company to eventually run out of cash.

MORE FROM ARABIANBUSINESS.COM