Mumbai: NRI entrepreneur Naresh Goyal is putting in place a multi-phase, structured deal that will allow Abu Dhabi's Etihad Airways to buy a substantial stake in Goyal's Jet Airways valued at $1.2 billion. The structuring will also see Goyal and Etihad jointly hold 75% in the listed carrier, complying with Sebi's new public shareholding norms.
Jet is 80% held by Tail Winds, an overseas corporate body (OCB) incorporated in the Isle of Man, a tax haven, while Goyal and his wife directly own just about 11,000 shares or 0.01%. An OCB is an entity in which at least 60% is owned by a non-resident Indian (NRI). Though OCBs are currently not clubbed as part of FDI, the government had granted a special dispensation to Goyal in the nineties.
The Jet boss, sources said, is considering transferring either a part or the entire Tail Winds stake to another company, which will be the new holding company of Jet Airways. Indian laws allow NRIs to invest 100% in scheduled passenger airlines through the automatic route.
13/03/13 Boby Kurian/Patha Sinha & Reeba Zachariah/Economic Times
