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BW Businessworld

Jet Airways Jumps On Hopes Of Clearance For Etihad Deal

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Shares in Jet Airways (India) rose as much as 7.7 per cent 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 per cent 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.

Jet Airways shares up 4.3 per cent at Rs 305, still less than half the Rs 754.74 a share Etihad is paying for the stake.