New Delhi: Abu Dhabi-based Etihad Airways has agreed to halve the number of directors on Jet Airways' board as part of its Rs 2,058 crore deal, giving the Indian promoters 'effective control' of the carrier.
According to the revised agreement, Etihad would have two directors on the board after the deal, as against the earlier proposal of four in the 10-member board.
The revised structure seeks to address the concerns of the Foreign Investment Promotion Board (FIPB) and the Securities and Exchange Board of India (Sebi) with regard to effective control after the foreign direct investment (FDI) - the largest in the aviation space so far.
Besides, the Revenue Department was also looking deeper into the proposed deal to identify the beneficial owners and check whether it is structured in a way to evade taxes.
FIPB had in June deferred a decision on Jet's proposal to sell a 24 per cent stake to Gulf-based airline. The Board is set to meet again on the proposal on July 29.
26/07/13 Business Today
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According to the revised agreement, Etihad would have two directors on the board after the deal, as against the earlier proposal of four in the 10-member board.
The revised structure seeks to address the concerns of the Foreign Investment Promotion Board (FIPB) and the Securities and Exchange Board of India (Sebi) with regard to effective control after the foreign direct investment (FDI) - the largest in the aviation space so far.
Besides, the Revenue Department was also looking deeper into the proposed deal to identify the beneficial owners and check whether it is structured in a way to evade taxes.
FIPB had in June deferred a decision on Jet's proposal to sell a 24 per cent stake to Gulf-based airline. The Board is set to meet again on the proposal on July 29.
26/07/13 Business Today
