InterGlobe Enterprises, IndiGo's parent, confirms interest in Virgin Australia

In a dramatic change in stance, InterGlobe Enterprises, the largest shareholder of IndiGo, has confirmed its interest in Virgin Australia.

In a statement on May 15, InterGlobe said it had signed an agreement to participate in the sale process of Virgin Australia.

"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," the company said.

It declined to share  further details.

The announcement comes less than a week after IndiGo clarified to the exchanges that it 'does not have any interest.'

"We deny the contents of these reports and would like to clarify that the Company has not formulated any indicative proposal, nor does it have any interest in this matter," InterGlobe Aviation, which operates IndiGo, had said.

Now after confirming its interest, InterGlobe will have to ready its arsenal as it competes with upto another 20 suitors who have lined up for Virgin Australia.

Bloomberg reported that Deloitte, the airline’s administrator, expects eight indicative offers. Out of these, three will be shortlisted and will to submit a binding offer.

Interestingly, InterGlobe seems to be up against alternative asset management companies, private investment firms and private equity players. No other airline, at least till now, has confirmed its interest.

The suitors include Brookfield Asset Management Inc, Bain Capital and BGH Capital.