Jet finalising sale of 5% of promoters’ equity

Mumbai: Mr Naresh Goyal, Chairman, Jet Airways, said he would go in for a private placement of shares or a qualified institutional placement (QIPs) shortly to dilute the promoters’ equity stake in the airline by five per cent.
As per the Securities and Exchange Board of India regulations for listed companies, the Jet Airways promoter has to bring down his equity stake from 80 per cent to 75 per cent before March 2008.
Mr Goyal said he was in talks with the merchant bankers and details of the equity sale would be finalised soon. Jet Airways will also launch its proposed $400-million rights issue in the current fiscal. Jet Airways shares closed at Rs 995.45 on Friday on BSE, down by 0.18 per cent.
Jet, the largest private airline in the country, plans to start a South Asia hub either in Bangkok or in Kuala Lumpur, Mr Goyal said. This would enable Jet to offer services to more international destinations and also operate more flights out of the proposed hub. As the airline has code sharing agreements with several airlines including Qantas of Australia, ANA of Japan and Malaysian Airlines, the Asian hub would help it cater to its passengers better. This would be Jet’s second international hub; it has a hub in Brussels with the support of Brussels Airline.
05/01/08 Business Line

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Categories: Jet Airways Jan 2008