What experts feel about Cabinet clearing Jet-Etihad deal

Written By Unknown on Jumat, 04 Oktober 2013 | 08.11

The Union Cabinet on Thursday cleared Jet Airways ' proposed sale of 24 percent equity to Abu Dhabi-based Etihad, days after the Rs 2,058 crore deal got regulatory clearances.

Also Read: Cabinet nod to Jet-Etihad stake sale deal

The proposal was of Etihad to subscribe 27,263,372 Jet shares of Rs 10 each, amounting to 24 percent of post-issue paid-up equity share capital for Rs 2,057.66 crore. CCEA gave its nod on the conditions that, among other things, Jet and Etihad would adhere to RBI policy guidelines and SEBI regulations, comply with all Indian laws and take prior FIPB approvals for any further changes in the shareholders agreement, commercial cooperation agreement, articles of association, investment agreement and shareholding patterns, the sources said. The deal has already been cleared by SEBI and FIPB.

Once the deal is clinched after CCEA approval, Jet promoter Naresh Goyal would hold 51 percent stake and Etihad 24, with 25 percent remaining with the public.

To know what experts Ajay Prasad, former aviation secretary; Saroj Datta, former ED, Jet Airways; Jitendra Bhargava, Former ED, Air India; and Kapil Kaul, CAPA, feel about the Cabinet nod to the Jet-Etihad stake sale deal, watch videos.



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