Jet Airways will sign 24% stake sale deal with Etihad today: sources

Jet Airways will sign 24% stake sale deal with Etihad today: sources

Jet Airways can announce a 24 per cent stake sale to Abu Dhabi-based carrier Etihad Airways as soon as Friday, February 1, sources said on Thursday.

A person with direct knowledge of the development claimed that Jet would most likely sign the term sheet on Friday, and that the deal would take place in two tranches.

Speaking on the topic, the person said, "The deal is likely to happen in two tranches wherein there will be a direct sale of shares in the first tranche and then a second tranche will see issue of fresh equity and warrants."

The person also said that some nominees of Etihad would be included in the board of directors; however, Naresh Goyal would continue to be the promoter and chairman of the domestic carrier.

Earlier reports had suggested that Etihad's offer would be discussed at Jet Airways' board meeting on February 1.

Yesterday, Jet's senior management including Mr. Goyal, and Etihad's senior officials including CEO James Hogan held a meeting with civil aviation minister Ajit Singh and commerce minister Anand Sharma. Following the meeting, Mr. Hogan said that the meeting with aviation ministry officials regarding the potential deal Jet-Etihad deal was very good.

Jet Airways shares gained 4.34 per cent to close at Rs 622.70 apiece on the Bombay Stock Exchange on Thursday.

Tagged with