Jet Airways jumps on hopes of clearance for Etihad deal

  • Reuters, Abu Dhabi
  • |
  • Updated: Sep 02, 2013 01:05 IST

Shares in Jet Airways (India) Ltd rose as much as 7.7 % after Abu Dhabi's Etihad Airways said it expected its investment in the Indian carrier to be cleared by Indian authorities "imminently". 

The deal, which had been delayed due to concerns raised by regulators and politicians in India, won a key approval from the Foreign Investment Promotion Board in late July.

It still needs to be cleared by the antitrust regulator and a cabinet panel. 

Etihad and Jet have extended the deal closing deadline for the second time until the end of September.

Etihad is buying a 24 % stake in Jet for about $379 million. It will also invest $150 million in Jet's frequent flyer programme, and paid $70 million to buy Jet's three pairs of Heathrow slots through a sale and leaseback agreement. 

By 0607 GMT, Jet Airways shares up 4.5 % at Rs 305.45 rupees, still less than half the Rs 754.74 a share Etihad is paying for the stake.

 

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