Jet Airways shares gain nearly 11 pct

Written by PTI | Mumbai | Updated: Feb 7 2014, 01:09am hrs
Jet AirwaysJet's stock finally ended at Rs 234.45, up 10.93 per cent on the BSE. Reuters
Shares of Jet Airways closed with nearly 11 per cent gains today after Abu Dhabi-based Etihad Airways got Competition Commission's approval to buy 50.1 per cent stake in Jet Privilege Pvt Ltd, a customer loyalty programme unit of the Indian carrier.

After surging 13.15 per cent to Rs 239.15 in intra-day trade, Jet's stock finally ended at Rs 234.45, up 10.93 per cent on the BSE.

At the NSE, the stock settled with a gain of 9.94 per cent at Rs 232.80.

On the volume front, 21.41 lakh shares of the company changed hands on the BSE, while over 78 lakh shares were traded at the NSE during the day.

Clearing the transaction by majority, CCI yesterday said that the deal was unlikely to have any adverse impact on market competition, as Etihad's purchase of 24 per cent stake in Naresh Goyal-led Jet Airways has already been approved and the two carriers were already partners in their respective frequent flyer programmes.

Under such customer loyalty programmes, airlines offer certain benefits to their frequent flyers.

Under this deal, Etihad will acquire 50.1 per cent stake in JPPL subsequent to the hiving off of Jet's loyalty business into the subsidiary on a going concern basis.

However, valuation of this deal has not been disclosed.