Jet Airways share price zooms 9% on reports that Naresh Goyal has agreed to sell controlling stake

By: | Published: November 28, 2018 11:24 AM

Jet Airways share price: Shares of India's major private sector airline Jet Airways gained in the morning trade on Wednesday on reports that promoter Naresh Goyal has agreed to sell controlling stake in the firm.

Jet Airways share price soared more than 8.9% to intra-day high of Rs 319.80.

Jet Airways share price: Shares of India’s major private sector airline Jet Airways gained in the morning trade on Wednesday on reports that promoter Naresh Goyal has agreed to sell controlling stake in the firm. Jet Airways share price soared more than 8.9% to intra-day high of Rs 319.80. CNBC TV18 reported citing sources that Jet Air promoter Naresh Goyal has agreed to sell controlling stake in the company, after prospective buyers were unwilling to move ahead with the deal without getting a controlling stake.

Also read: Etihad zeroes in on Indian partner to dilute Naresh Goyal control in Jet Airways; looks to raise stake

The talks are will now move to next stage of diligence, valuation, the channel said. Naresh Goyal is likely to have met all 3 prospective investors–  Tata Group, Etihad, and consortium of Air France, KLM and Delta.  Jet Airways promoters currenlty hold 51%,  and Etihad holds 24% stake. Earlier, it was reported that Abu Dhabi-based Etihad Airways was looking to raise its stake to up to 49%, the maximum a foreign airline can hold as per the foreign direct investment rules for the aviation sector.

 “Etihad has zeroed in on a local business partner and it is a person who is more aligned to the West Asian interests,” Financial Express reported citing a source aware of the development as saying. In response to an FE query, Jet Airways Spokesperson said, “In line with its policy, Jet Airways does not comment on speculation.” Etihad’s spokesperson did not respond to the query till the time of going to the press.

Yesterday, the firm reportedly laid off 16 more employees, even as the crisis ridden firm continues to hand out pink  slips in small chunks as one of the means to reduce cost. These employees were working as ground staff in Jet Airway’s Kochi and Hyderabad offices, a source told PTI. Last month, the airline had laid off 20 employees, including some senior-level executives from the in-flight services department. Prior to that, it reportedly had asked 15 managerial level employees from various departments, including engineering, security and sales, to leave the company, said the PTI report. 

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