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HindustanTimes Sat,19 Apr 2014

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

Reuters  Mumbai, April 25, 2013
First Published: 09:24 IST(25/4/2013) | Last Updated: 19:51 IST(30/4/2013)

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.

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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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