Jet Air­ways shares surge 8 pc af­ter Eti­had deal

The Political and Business Daily - - STOCKSCAN -

SHARES of Jet Air­ways on Tues­day surged 8 pc in early trade af­ter the 2,058 crore-deal with Abu Dhabibased Eti­had was ap­proved by the For­eign In­vest­ment Pro­mo­tion Board (FIPB). Eti­had will hold 24 pc stake in the do­mes­tic car­rier, and FIPB's ap­proval was based on ma­jor rid­ers to main­tain ef­fec­tive In­dian con­trol over the air­line.

Cheer­ing the move that was an­nounced af­ter the mar­ket hours on Mon­day, shares of Jet Air­ways opened the day on a pos­i­tive note and as the trade pro­gressed, it fur­ther gained 7.95 pc to 445 on the BSE.

At the NSE, the stock zoomed up by 8 pc to 444.

How­ever, later the scrip pared most of its gain on profit-book­ing and was trad­ing flat with 0.02 pc gain at 412.30 on the BSE.

Over the past two trad­ing ses­sions, Jet shares have gained 22.38 per cent.

Un­der the con­di­tions set by FIPB, Jet will have to seek prior govern­ment ap­proval to make any changes in the Share Hold­ers Agree­ment (SHA) with Eti­had or any change in share­hold­ing of the com­pany.

The con­di­tions also in­clude that all share­holder dis­putes and dis­putes un­der SHA would have to be ad­ju­di­cated un­der In­dian law as op­posed to English law as was pro­posed in the re­vised SHA sub­mit­ted just be­fore the FIPB meet­ing. Any other ar­bi­tra­tion can hap­pen un­der English law.

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