Jet Air, Etihad in talks for stake sale; 24% could change hands
If Etihad and Jet agree to a 24% stake sale, it would not trigger the takeover code which say that a company acquiring 25% and above in another listed firm, needs to make an open offer for another 26% of the equity. Since foreign investment in aviation is capped at 49% and such a provision could potentially result in the limit being breached, the government had said the investors would need to apply to the regulator for an exemption.
* Etihad is expected to pick up a 24% stake in Jet for around R1,600-1,800 crore
* Jet’s market capitalisation as per Thursday’s share price is R5,242 crore
* More equity, access to loan for Jet Airways; greater traffic from India for Etihad
* Jet-Etihad tie-up could see Jet emerging as more formidable rival to Air India
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