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Jet Airways says in stake sale talks with Etihad; shares soar 7 pc

Jet Airways says in stake sale talks with Etihad; shares soar 7 pc

Jet Airways says it is in talks for a potential stake sale to UAE-based carrier Etihad and various deal structures are being explored to ensure compliance to the regulatory requirements.

Jet Airways on Thursday said it is in talks for a potential stake sale to UAE-based carrier Etihad and various deal structures are being explored to ensure compliance to the regulatory requirements.

While the Indian carrier maintained that the final terms of the deal have not been finalised and there cannot be a "firm time line" as to the progress of talks, shares of Jet Airways rose sharply by about 7 per cent to Rs 618.70.

There have been reports that Etihad may buy 24 per cent stake in Jet for about Rs 1,800 crore. There have also been some reports about Etihad being in talks for potential investment in another Indian carrier Kingfisher Airlines.

Reacting to the reports, Jet said in a stock exchange filing that "Jet and Etihad are in a discussion regarding a potential investment by the latter in the former...

"... these discussions have commenced recently pursuant to the liberalised FDI policy which permitted foreign investment in the shares of an Indian airline," Jet added.

"The discussions are in progress but no terms have been firmed up at present," it said.

"Various structures are being explored by the legal and commercial teams and care being taken to ensure that all the Indian regulatory requirements are fully complied with," the carrier said.

The statement further said by its very nature, there cannot, at this stage, be a firm time line as to the progress of these negotiations, considering the complexity of trans-national transactions such as this and the complexity of the legal requirements of the regulatory structure.

"Since no agreement has been reached with Etihad as yet, no regulatory approvals have been sought at present," Jet said.

An appropriate announcement shall be made upon finalisation of the terms of the investment with Etihad as per legal and regulatory requirements, the filing added.