Etihad Airways has offered to invest in debt-laden Indian carrier Jet Airways Ltd at 150 rupees ($2.11) per share, along with an immediate release of $35 million after certain conditions are met, CNBC-TV18 reported on Wednesday, citing sources.
The offer comes at a staggering 49 percent discount to Jet’s closing price of 293.70 rupees on Tuesday.
Jet Airways shares tumbled after the report, falling as much as 7.5% to 271.75 rupees in their biggest intraday% age loss since Dec. 10, 2018.
Etihad Chief Executive Tony Douglas has written to State Bank of India on the restructuring plan for the airline, the report said.
Etihad, which owns 24% of Jet, wants exemption from the market regulator on preference pricing and open offer guidelines to invest more for the bailout, the report added.
The letter stated the current situation of Jet Airways is “precarious" and the airline needs emergency funding, CNBC-TV18 report said.
Etihad has also insisted that Jet’s founder and Chairman Naresh Goyal must step down from the board and his stake should be slashed to 22% from 51%, according to CNBC-TV18.
Jet’s woes worsened with higher oil prices and intense competition in 2018. This would be the second time that the Middle Eastern airline has come to the debt-laden carrier’s rescue.
Jet and Etihad were not immediately available for comment.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.