NEW DELHI: Jet Airways on Thursday officially
admitted it was in stake sale talks with Abu Dhabi-based Etihad Airlines. Aviation ministry top brass, which is being regularly briefed by Jet management, says Etihad is likely to pick up to a 24% stake in a deal valued between Rs
1,500-1,800 crore. They say the deal is likely to be announced in the next
fortnight.
"Jet and Etihad are in a discussion regarding a potential investment by the latter in the former.. these discussions have commenced recently pursuant to the liberalized FDI policy which permitted foreign investment in the shares of an Indian airline. The discussions are in progress but no terms have been firmed up at present. Various structures are being explored by the legal and commercial teams and care being taken to ensure that all the Indian regulatory requirements are fully complied with," Jet said in a filing to the BSE.
"By its very nature, there cannot, at this stage, be a firm time line as to the progress of these negotiations, considering the complexity of trans-national transactions such as this, and the complexity of the legal requirements of the regulatory structure. Since no agreement has been reached with Etihad as yet, no regulatory approvals have been sought at present. An appropriate announcement shall be made upon finalization of the terms of the investment with Etihad as per legal and regulatory requirements," the filing added.
"Jet and Etihad are in a discussion regarding a potential investment by the latter in the former.. these discussions have commenced recently pursuant to the liberalized FDI policy which permitted foreign investment in the shares of an Indian airline. The discussions are in progress but no terms have been firmed up at present. Various structures are being explored by the legal and commercial teams and care being taken to ensure that all the Indian regulatory requirements are fully complied with," Jet said in a filing to the BSE.
"By its very nature, there cannot, at this stage, be a firm time line as to the progress of these negotiations, considering the complexity of trans-national transactions such as this, and the complexity of the legal requirements of the regulatory structure. Since no agreement has been reached with Etihad as yet, no regulatory approvals have been sought at present. An appropriate announcement shall be made upon finalization of the terms of the investment with Etihad as per legal and regulatory requirements," the filing added.
Aviation ministry top officials say that while
Vijay Mallya's grounded Kingfisher is also eying an investment from Etihad, Jet
is likely to be chosen by the Gulf carrier. At close of trade on Thursday,
shares of Jet Airways were up 4.70% at Rs 607 on the BSE. In intra-day, the
stock surged 6.74% to Rs 619. On NSE, the scrip settled at Rs 608, up 4.79%
from its previous close.
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