Logistics

Jet to allot shares to Etihad 2-3 weeks after all clearances

Our Bureau New Delhi | Updated on August 12, 2013 Published on August 12, 2013

After the Cabinet Committee on Economic Affairs and the Foreign Investment Promotion Board give their clearances for Etihad Airways to buy 24 per cent stake in Jet Airways, it should not take Jet more than two-three weeks to allot shares to it, a senior airline official said on Monday.

“We have not got any letter from FIPB saying what their concerns or issues are. Any deal that is more than Rs 1,200 crore of investment (coming) into the country, goes to CCEA. Once it is approved, the FIPB will give its communication saying that the approval is in place,” Ravishankar Gopalakrishnan, Chief Financial Officer, Jet Airways said.

Gopalakrishnan said some changes to the shareholders’ agreement were required earlier and they have all been completed. “There is no additional or fresh requirement which has come from any of these agencies. We guess whatever we have done is good enough,” he said.

Meanwhile, the process of carving out the privilege programme from Jet Airways into a subsidiary so that equity investment can come into the new company is expected to be completed in the next two-three months.

In April this year, Etihad agreed to acquire 24 per cent stake in Jet Airways for $379 million (Rs 2,050 crore).

This is part of a $600-million commitment on Etihad’s part to strengthen the partnership.

ashwini.phadnis@thehindu.co.in

Published on August 12, 2013
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