Friday, 22 November 2013

24 PERCENT JET AIRWAYS EQUITY ALLOTTED TO ETIHAD AIRWAYS

Jet Airways on 20 November 2013 concluded the sale of 24 percent equity stake in the airline to Etihad Airways for 2057 crore Rupees.
The 335 million Dollar deal, which was unveiled in April 2013, is the first cross border transaction in the Indian aviation sector after it was opened up for foreign direct investments in 2012.
In September 2012, Government of India allowed foreign airlines acquire up to 49 percent stake in domestic carriers.
The Jet Airways issued and allotted 27263372 equity shares of a face value of 10 Rupees each at a price of 754.74 Rupees per equity share on a preferential basis to Etihad Airways. With this the paid up share capital of Jet Airways has gone up to 113597383 equity shares of 10 Rupees each. The move formalizes the sale of 24 percent equity of Jet Airways to the Etihad Airways.
The deal has already been cleared by capital markets regulator SEBI, Foreign Investment Promotion Board (FIPB), Cabinet Committee of Economic Affairs (CCEA) and Competition Commission of India (CCI.

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