PMO seeks clarification on Jet-Etihad agreement | india | Hindustan Times
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PMO seeks clarification on Jet-Etihad agreement

india Updated: Jun 30, 2013 21:53 IST

The Prime Minister’s Office (PMO) has sought clarifications from ministries concerned, including commerce and industry, on the proposed R2,058-crore Jet-Etihad deal.

The deal, largest foreign investment proposal in the aviation sector, is facing regulatory hurdles with various ministries raising major concerns over the ultimate control of Jet Airways post transaction.

Government sources said the PMO has sought clarifications on the Jet Airways selling stake to Abu Dhabi-based Etihad Airways from ministries and departments concerned including commerce and industry, civil aviation and corporate Affairs. However, nature of the clarifications sought could not be immediately ascertained.

Also, Naresh Goyal-led Jet Airways reportedly amended its shareholders agreement with Etihad following concerns raised by SEBI. The clause stipulating that Jet and Etihad could vote together as persons acting in concert was reportedly removed in the new agreement, as also one that Etihad has to maintain a minimum 15% shareholding at all times.

The Foreign Investment Promotion Board (FIPB) had on June 14 deferred a decision on Etihad's planned 24% stake buy in Jet Airways, and had sought more details on “effective control” and “ownership”.