'Etihad to buy 24% stake in Jet Airways in $297 million deal'
New Delhi: Etihad Airways will most likely pick up a 24 percent stake in Jet Airways for about $297 million in a deal likely to be announced as early as this week, a report published today said.
A senior civil aviation ministry official at India's civil aviation ministry was quoted in a Wall Street Journal report as saying that the deal was almost as good as done.
If the deal indeed materializes, it will be the first investment by a foreign carrier in an Indian airline. Jet Airways had earlier announced that it was in talks with the Abu Dhabi-based carrier for a possible stake sale.
"Jet and Etihad are in a discussion regarding a potential investment by the latter in the former... these discussions have commenced recently pursuant to the liberalised FDI policy which permitted foreign investment in the shares of an Indian airline," Jet Airways informed the Bombay Stock Exchange.
"The discussions are in progress but no terms have been firmed up at present. Various structures are being explored by the legal and commercial teams," it had said in its filing.
Following the statement, shares of Jet Airways rose sharply by about seven per cent to Rs 618.70.
The earlier statement was the first from Jet that revealed talks being held with Etihad for potential investment since the FDI policy was amended by the government in September 2012 to allow foreign airlines pick up upto 49 per cent equity in an Indian carrier.