New Delhi: In further regulatory turbulence for Rs 2,060 crore Jet-Etihad deal, capital market regulator Sebi has initiated fresh proceedings against the Abu Dhabi carrier, whose officials may be called for personal hearing next month to explain their stance.
Etihad, which has purchased 24% stake in Jet Airways, has rejected any obligation to make an open offer for minority shareholders, but Sebi is not yet convinced with its justification, sources said.
Etihad officials will be called for a personal hearing early next month to explain its position and why action should not be taken against the carrier for not making an open offer as it is getting joint control and substantial rights in running Naresh goyal-led airline, sources said. Sebi had sought clarity on the issue from other agencies, including CCI, finance and aviation ministries, sources had said. While Sebi had earlier contended that an open offer might not be required if Etihad is classified as a 'public shareholder' after buying Jet's 24% stake, it had put a caveat saying this observation could change if some other regulator points out at transfer of control.
29/03/14 Times of India
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Etihad, which has purchased 24% stake in Jet Airways, has rejected any obligation to make an open offer for minority shareholders, but Sebi is not yet convinced with its justification, sources said.
Etihad officials will be called for a personal hearing early next month to explain its position and why action should not be taken against the carrier for not making an open offer as it is getting joint control and substantial rights in running Naresh goyal-led airline, sources said. Sebi had sought clarity on the issue from other agencies, including CCI, finance and aviation ministries, sources had said. While Sebi had earlier contended that an open offer might not be required if Etihad is classified as a 'public shareholder' after buying Jet's 24% stake, it had put a caveat saying this observation could change if some other regulator points out at transfer of control.
29/03/14 Times of India
