BackJet Airways jumps on hopes of clearance for Etihad deal
Jet Airways shares rise 7.8% after Etihad says it expects the deal to be cleared by Indian authorities ‘imminently’
Premium(AFP)
Mumbai: Shares in Jet Airways (India) Ltd rose as much as 7.8% after Abu Dhabi’s Etihad Airways PJSC said it expected its investment in the Indian carrier to be cleared by Indian authorities “imminently".
The deal, which had been delayed due to concerns raised by regulators and politicians in India, won a key approval from the Foreign Investment Promotion Board in late July. It still needs to be cleared by the antitrust regulator and a cabinet panel.
Etihad and Jet Airways have extended the deal closing deadline for the second time until the end of September. Etihad is buying a 24% stake in Jet for about $379 million. It will also invest $150 million in Jet’s frequent flyer programme, and paid $70 million to buy Jet’s three pairs of Heathrow slots through a sale and leaseback agreement.
At 12:26pm, Jet Airways shares were up 4.6% at ₹ 305.30 apiece, still less than half the ₹ 754.74 per share Etihad is paying for the stake.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
