Jet Airways has finally pushed through its 24-per cent stake sale to Abu Dhabi-based airline Etihad Airways for $379 million (approx Rs 2,050 crore) after several months of hectic negotiations. Mumbai-based Jet informed the Bombay Stock Exchange on Wednesday that its Board has approved the allotment of 27.3 million shares at Rs 754.74 ($13.90) a piece on a preferential basis to Etihad.
The price represents a 31.7 per cent premium to Jet's closing share price on Tuesday. "This strategic investment with a $600-million commitment from Etihad will help further strengthen Jet Airways' financial position," Jet said.
Etihad has also committed an investment of another $220 million (Rs 1,197 crore), which will help further strengthen Jet's financial position. $70 million of this investment has already been paid to Jet for its three slots at Heathrow Airport as part of the code-sharing agreement.
An additional $150 million will be invested in the next months by Etihad by way of a majority equity investment in Jet's frequent flyer programme Jet Privilege.
25/04/13 Business Today/Business Today
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The price represents a 31.7 per cent premium to Jet's closing share price on Tuesday. "This strategic investment with a $600-million commitment from Etihad will help further strengthen Jet Airways' financial position," Jet said.
Etihad has also committed an investment of another $220 million (Rs 1,197 crore), which will help further strengthen Jet's financial position. $70 million of this investment has already been paid to Jet for its three slots at Heathrow Airport as part of the code-sharing agreement.
An additional $150 million will be invested in the next months by Etihad by way of a majority equity investment in Jet's frequent flyer programme Jet Privilege.
25/04/13 Business Today/Business Today
