Jet Airways gains nearly 20% after Etihad buys 24% stake

  • Reuters, Mumbai
  • |
  • Updated: Apr 30, 2013 19:51 IST

Shares in Jet Airways Ltd rose nearly 20%, its daily upper limit, in pre-open trade after Gulf carrier Etihad Airways said it is taking almost a quarter stake in Jet Airways at Rs. 754.74 per share, a 31.7% premium to Jet's closing share price on Tuesday.

Etihad will also invest an additional $150 million in Jet's frequent flyer programme and spend $70 million to buy Jet's three pairs of Heathrow slots through the sale and leaseback agreement announced in February.

The deal sets a valuation benchmark for further investment in Indian airlines, with budget carrier SpiceJet Ltd frequently the subject of stake sale reports.

Spicejet rose 13.6%, while Kingfisher Airlines Ltd gained 3.7%.

 

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