Mumbai: Jet Airways shareholders on Friday gave approval for sale of 24% equity to Etihad Airways but the airline management deferred the proposal to amend the company's article of association following protests from shareholders and objections from Securities and Exchange Board of India.
Jet Airways chairman Naresh Goyal will dilute 5% of his share holding in an offer for sale either on May 29 or 30. Goyal holds 80% in Jet Airways and the dilution is required to conform to Sebi's share holding norms. Vice president (investor relations) K G Vishwanath told share holders that totally there will be a cash infusion of $750 million (Rs 4,169 crore) in both debt and equity as a part of the deal. This cash infusion will help the airline to reduce debt from $2.1 billion (Rs 11,500 crore ) to $ 1.5 billion (Rs 8,200 crore), he said.
Goyal told shareholders the relaxation of FDI rules was a game changer and the alliance with Etihad will enable Jet to increase network, reduce costs, improve profit and grow in a sustainable manner.
24/05/13 Aneesh Phadnis/Business Standard
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Jet Airways chairman Naresh Goyal will dilute 5% of his share holding in an offer for sale either on May 29 or 30. Goyal holds 80% in Jet Airways and the dilution is required to conform to Sebi's share holding norms. Vice president (investor relations) K G Vishwanath told share holders that totally there will be a cash infusion of $750 million (Rs 4,169 crore) in both debt and equity as a part of the deal. This cash infusion will help the airline to reduce debt from $2.1 billion (Rs 11,500 crore ) to $ 1.5 billion (Rs 8,200 crore), he said.
Goyal told shareholders the relaxation of FDI rules was a game changer and the alliance with Etihad will enable Jet to increase network, reduce costs, improve profit and grow in a sustainable manner.
24/05/13 Aneesh Phadnis/Business Standard
