Etihad confirms takes 24 pct stake in Jet Airways for $379 million

DUBAI Wed Apr 24, 2013 7:10pm IST

An Etihad Airways aircraft is seen at Abu Dhabi International Airport, September 19, 2012. REUTERS/Ben Job/Files

An Etihad Airways aircraft is seen at Abu Dhabi International Airport, September 19, 2012.

Credit: Reuters/Ben Job/Files

Related Topics

Stocks

   

DUBAI (Reuters) - Abu Dhabi's Etihad Airways confirmed it had taken a 24 percent minority stake in Jet Airways (JET.NS) for $379 million.

The Gulf carrier said in an emailed statement it would subscribe to 27.3 million new shares at 754.74 rupees per share.

Jet said in a brief statement to the stock exchange earlier on Wednesday that its board had approved the allotment to Etihad.

Etihad, which is on an aggressive expansion drive, will also make a $150 million equity investment in Jet's frequent flyer programme and spend $70 million to buy Jet's three pairs of Heathrow slots through the sale and leaseback agreement announced in February.

Jet's majority ownership will remain with Indian nationals and Jet's founder and non-executive chairman Naresh Goyal will hold 51 percent of the airline after the deal, which is subject to shareholder approval, the statement added.

As part of the deal Jet will establish a hub in Abu Dhabi and expand its reach through Etihad Airways' global network.

(Reporting by Praveen Menon; Editing by Helen Massy-Beresford)

FILED UNDER:
  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage