Naresh Goyal takes Tail Winds route for Jet Airways stake sale takeoff
The promoter of India’s second-largest passenger carrier Jet Airways, Naresh Goyal, has laid the groundwork for a complex transaction that will enable him to sell 24% stake in the airline to Abu Dhabi\'s Etihad Airways.
Goyal re-registered Tail Winds to make it into a corporate vehicle known as New Manx Vehicle (NMV) on February 12, which will make the restructuring or winding up of Tail Winds a smoother and quicker process. NMVs were allowed by Isle of Man as part of the country\'s new Companies Act 2006. The information was retrieved from the Isle of Man registrar of companies website by FE. Jet Airways did not comment on the matter.
Previously Tail Winds, through which Goyal owns a 79.99% stake in Jet Airways, was a normal Isle of Man Company registered under the Isle of Man Companies Act 1931-2004.
“An existing company under the Companies Act 1931-2004 can be re-registered as an NMV,” stated London Stock Exchange\'s Alternate Investment Market in a note explaining NMVs. “This has already been done in order to assist in corporate restructuring or immediately prior to the sale of a company in order to negate the necessity to carry out a buy back or whitewashing procedure under the 1931 Act provisions."
“Companies under the 2006 Act will be able to apply to be continued in a territory outside the Isle of Man,” said financial services company Cayman National in a note explaining NMVs. “The Act will also offer the ability to merge or consolidate
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