Jet Airways shares gain 1% as Sebi says no need for Etihad open offer

May 09 2014, 17:38 IST
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SummaryJet Airways rose 1.06 pct to Rs 238.55 at the close on the BSE after surging as much as 4.13 pct to Rs 245.80.

Shares of Jet Airways gained 1 per cent today after market regulator Sebi said Abu Dhabi carrier Etihad Airways does not have to make an open offer following its purchase of stake in the Indian airline.

Jet Airways rose 1.06 per cent to Rs 238.55 at the close on the BSE after surging as much as 4.13 per cent to Rs 245.80. The scrip climbed 0.53 per cent to Rs 237.45 on the National Stock Exchange.

On the BSE Sensex, 5.91 lakh shares of the company changed hands, while more than 25 lakh shares were traded on the NSE.

Etihad bought a 24 per cent stake in Jet Airways in a deal valued at about Rs 2,060 crore, which was announced in April 2013.

Sebi said yesterday Etihad does not have to make an open offer to acquire an additional stake from Jet shareholders.

Clearing the regulatory hurdles for the high-profile deal, the Securities and Exchange Board of India (Sebi) ruled that Etihad "has not acquired control over Jet".

"...the fact that existing promoters hold 51 per cent shares and voting rights in Jet strengthen the stand of Sebi as communicated to Ministry of Finance vide letter dated September 25, 2013, that Etihad cannot be termed as a person acting in concert along with the existing promoters of Jet," the regulator had said in its order.

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