Struck deals are valued but those unstruck (and expected to be struck) are more valuable. The higher-than-expected valuation that Jet Airways got from Etihad has prompted investors to push up all aviation shares in anticipation that there are more deals coming their way.
SL Narayanan, chief financial officer, Sun Group, in an interview with CNBC-TV18 said the Jet deal will renew interest among foreign airlines looking to expand in India.
“It is a very positive development. We’ve had the revised guidelines on foreign direct investment (FDI) for some time now and this is the first and the most significant development after that change late last year,” said Narayanan.
The 24 percent stake buy by Abu Dhabi-based Etihad in Jet has raised hopes for SpiceJet also getting into a deal with foreign carrier Qatar Airways.
25/04/13 First Post
