end of the road for sahara
the sahara group is divesting its non core business like avaiation, entertainment , real estate inorder to retain its core business - a ponzi scheme. the consulting company madanated to do the stuff uses terms terms like restructing or divesting, while i would have preffered a plain term "sale". i wonder what is the reason for the sudden change in business strategy - may be something like not enough cash being raised to pay back existing depostors?
all ponzi schemes like to keep the appearence of a healthy business until they bust. i guess the same is with Sahara - sponsoring the indian cricket or offering jobs in the group to all those from sahar airlines who dont want to join jet -
i guess the end is near for the group and it hope it doesnt lead to social chaos in many north indian states.
all ponzi schemes like to keep the appearence of a healthy business until they bust. i guess the same is with Sahara - sponsoring the indian cricket or offering jobs in the group to all those from sahar airlines who dont want to join jet -
i guess the end is near for the group and it hope it doesnt lead to social chaos in many north indian states.
posted by tvm at 12:40 AM
5 Comments:
thanks for the alarm bells!
i never thought of these developments from thins angle.
do you have any numbers to putthis into perspective?
pravin
hi pravin,
thanks for being here.
they sell an airlines for $500 million and buy an cricket sponsorship for $100 million. thw whole activity seems to me as a attemt to show everything is going on smooth
i think the purchase price for Air Sahara was without the liabilities. So, $500 million is not the net selling price for Sahara group. any idea of the size of Air Sahara's liabilities?
yep, $500 doesnt include liabilities. i dont know what the debt is. but i think there is no economic reason for jet to buy sahara. what i write next can be easily termed highly irresponsible but i think what happened is jet shareholders paid $500 million to the sahara group and the promoter of jet must have got some amount say $150 millon deposited in some swiss a/c and some politicians $100 million and Sahara must have got a little more than what is acually worth. i know these are irresonsible comments but this is the only logical reason how the deal could go through.
hey tvm alias anonymous,
did u read a recent story of RBI special audit in the first quarter of next year (March-June). They are asking Sahara Finance to bring back its investments into its book by that time.
If you look at policy changes, they have reduced discretionary investments from 20% to nil in less than two years. Don't you think, it is too short a period to adjust.
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