Mumbai: Jet Airways has kickstarted the process for change in ownership structure of the airline. On Thursday, Tail Winds Ltd which controls 79.99% in the airline sold 2.51 crore shares to company chairman Naresh Goyal at Rs 570 per share in a deal valuing Rs 1433 crore.
Tail Winds which is 100% owned by Goyal is registered in Isle of Man and holds 6.90 crore shares in Jet Airways. As per the plans Tail Winds entire share holding will be transferred to Goyal and a few more transactions could take place to complete the process.
The change of ownership has been necessitated ahead of Etihad Airway';s investment in Jet Airways. Tail Winds is categorised as foreign entity and the government rules do not allow foreign holding in an airline beyond 49%. Etihad has agreed to pick up 24% stake in Jet Airways in a deal valuing around Rs 2060 crore.
On Friday, Jet Airways seek share holder approval for sale of preference shares to Etihad and incorporating new articles of association in an extra ordinary general body meeting. Proxy advisory companies like SES have asked share holders to oppose the move as it empowers Etihad to have a say in critical matters such as appointment of auditors, appointment of vice-chairman and removal of directors.
23/05/13 Aneesh Phadnis/Business Standard
