Jet Airways today said it has got the government’s approval to extend holding its Annual General Meeting till December 30, as it needs more time for financial statements to reflect merger of its subsidiary JetLite.
The airline, which would present the financial statements at the AGM, said that the final hearing of the scheme of merger of JetLite with itself is listed at the Bombay High Court for July 22.
In a regulatory filing, Jet Airways said it has “been granted approval by the Registrar of Companies, Maharashtra, Mumbai, for extension for holding its annual general meeting till December 30, 2016”.
Shareholders approved the merger of JetLite with Jet Airways in April this year.
“… the extension has been sought so as to enable the company to present financial statements of the merged entity to the members upon receipt of the approval from the High Court at Bombay,” the filing said.
The merger of JetLite would lead to greater efficiency in cash management of the merged entity and “unfettered access to cash flow generated by the combined business which can be deployed more efficiently to maximise shareholder value”, the airline had said earlier.
Jet Airways had bought Sahara Airlines in April, 2007, for Rs 1,450 crore after an arbitration award. It later renamed Sahara Airlines as JetLite, operating it as a low-cost arm.
Shares of Jet Airways today closed almost flat at Rs 555.75 on the BSE.
Under the new Companies Act, a company needs to hold its Annual General Meeting within nine months of the last date of its first financial year, while thereafter the AGM needs to be held within six months of the fiscal-end.