It looks like the Jet-Etihad deal is finally approaching closure after months of going back and forth. Both Jet and Etihad have finally agreed on several sticky issues of board and management control, and are working on ironing out remaining differences, reports CNBC-TV18's Kritika Saxena.
The AirAsia-Tata venture may have stolen a march for now, but Etihad and Jet Airways might make an announcement of their own soon. As it was reported by CNBC-TV18, Etihad has been looking to pick up 24% in two tranches but the deal kept getting postponed due to several issues.
However, now according to sources about 10-12% will be sold in the first tranche, directly by promoters of Jet Airways . In the second tranche, Etihad will subscribe to a preferential allotment of shares, after which it will hold 24% of the expanded equity. The deal value is likely to be between USD 300-350 million.
Analysts say the issuance of fresh shares will help jet to partly retire its Rs 11,500 crore of debt.
09/03/13 CNBC-TV18/moneycontrol.com
