Etihad, Jet to finalise stake-sale deal soon
The deal is likely to see Etihad take up a 24% stake in the Indian carrier, the first instance of a foreign carrier investing in an Indian airline since the government allowed foreign direct investment in domestic airlines in September 2012.
“The deal will be carried out via mix of fresh equity issue and warrants issue,” said a person in the know of the development. “Post the deal, Naresh Goyal will continue to be promoter but Etihad will get two board seats.”
“Apart from this the management structure will not see much change,” the person added. On Tuesday, television channels reported that a deal has been finalised valuing Jet at Rs 760 per share giving it an overall value of around Rs 6,700 crore, a 15-20% premium to Jet’s current market value.
Jet’s shares closed 0.71% higher at Rs 609.85 on the BSE on Tuesday. As per Tuesday’s share price Jet’s market valuation was Rs 5,265 crore.
“I cannot give a firm indication about the valuation as it is yet to be finalised,” the person added. “The negotiations are over and now it is up to the boards of the two companies to decide.”
A deal between the two
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