The Jet Airways share gained 5.14 per cent on the bourses on reports of a 24 per cent stake sale to Etihad Airways. The deal, expected to be completed by the year-end, is likely to fetch Jet Airways Rs 1,600 crore, according to Aviation Ministry sources.
Jet Airways and Etihad have a code-sharing agreement. “This deal will be profitable to both. Jet can gain larger market share while Etihad will get a major exposure in India and strengthen its position in West Asia,” said an aviation analyst. In a statement, Jet Airways said: “There has been widespread media speculation on the potential stake sale by Jet Airways. The company cannot comment on speculative reports. As and when we do undertake any strategic initiatives, Jet Airways will advise the concerned authorities and relevant exchanges accordingly.”
The Jet Airways stock closed at Rs 555.90, up 5.14 per cent, on the BSE on Monday. The company’s share gained Rs 157 in the last two weeks following reports of the stake sale.