Jet Airways shares soar 7% after Cabinet nod for Rs 2,000 cr Etihad deal
Shares of Jet Airways soared today after the Cabinet approved its Rs 2,057 crore stake-sale deal with UAE-based Etihad Airways.
Jet Airways stocks were up over 7 percent at Rs 414 on the BSE while the broader markets were marginally higher.
Shares of Jet Airways have rallied 18 percent in the last four trading sessions. Early this week, the market regulator gave its nod to the Jet-Etihad deal, boosting chances of the Cabinet's approval.
Sebi said the proposed sale of 24 per cent stake to the UAE-based Etihad does not give controlling powers to the foreign carrier. It observed that the Rs 2,058 crore deal should not trigger a mandatory open offer for purchase of shares from public shareholders and Etihad would not be considered a promoter entity in Jet.
Etihad had agreed in April to buy a 24 percent stake in Jet in the first such deal since the government relaxed rules in September 2012 to allow foreign airlines to own up to 49 percent of Indian carriers.
The deal had been delayed due to scrutiny by regulators and also due to opposition from some politicians.