Abu Dhabi: Etihad Airways’ purchase of a stake in Jet Airways could be delayed until at least August as the Abu Dhabi carrier seeks assurances following setbacks for several Gulf investors in India, two sources familiar with the talks said.
Etihad, which is expanding globally, has been in talks over an equity stake in Jet since September after India relaxed ownership rules and allowed foreign airlines to buy up to 49 per cent in local carriers. The Gulf airline is eyeing a 24 per cent stake, valued at about $330 million, according to sources aware of the matter.
The deal, which would inject much-needed funds into Jet and help Etihad expand its reach into the vast Indian aviation market, has slowed over concerns of past failed forays by Gulf investors into India and the Abu Dhabi firm’s demands to protect its potential investment, the sources said, speaking on condition of anonymity as the matter is not public.
“It’s going to take some time; at least until August,” said one source.
“There are issues relating to what happened to some other UAE entities like Etisalat and Emaar in India. So nothing is going to happen soon.” Etisalat, the UAE’s biggest telecom operator, shut down its Indian mobile operations after a court ordered the revocation of cellular permits including those granted to Etisalat’s local affiliate following a scandal-tainted 2008 sale.
http://www.deccanchronicle.com/130411/news-businesstech/article/jet-etihad-deal-get-delayed
Etihad, which is expanding globally, has been in talks over an equity stake in Jet since September after India relaxed ownership rules and allowed foreign airlines to buy up to 49 per cent in local carriers. The Gulf airline is eyeing a 24 per cent stake, valued at about $330 million, according to sources aware of the matter.
The deal, which would inject much-needed funds into Jet and help Etihad expand its reach into the vast Indian aviation market, has slowed over concerns of past failed forays by Gulf investors into India and the Abu Dhabi firm’s demands to protect its potential investment, the sources said, speaking on condition of anonymity as the matter is not public.
“It’s going to take some time; at least until August,” said one source.
“There are issues relating to what happened to some other UAE entities like Etisalat and Emaar in India. So nothing is going to happen soon.” Etisalat, the UAE’s biggest telecom operator, shut down its Indian mobile operations after a court ordered the revocation of cellular permits including those granted to Etisalat’s local affiliate following a scandal-tainted 2008 sale.
http://www.deccanchronicle.com/130411/news-businesstech/article/jet-etihad-deal-get-delayed
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