Wednesday, January 30, 2013

Etihad to meet govt ahead of deal with Jet


New Delhi: Exactly 17 years after he had to buy back 40% stake in Jet Airways held by Gulf carriers when foreign direct investment by foreign airlines was disallowed, Naresh Goyal is all set to become the first beneficiary of the reopening up of FDI in the sector. Top officials of Abu Dhabi-based airline Etihad are meeting aviation and commerce ministers Ajit Singh and Anand Sharma on Thursday to apprise them of their decision to invest in Jet Airways before making a formal announcement.
According to sources, Etihad - which Goyal helped set up in 2003 - will pick up 24% stake in Jet Airways for about $330 million. This deal values Jet at about Rs 7,562 crore, a substantial premium from its market capitalization of almost Rs 5,100 crore on Tuesday when the share closed 1.9% down at Rs 590.6 on BSE.
30/01/13 Saurabh Sinha/Times of India
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