In what could be seen as an indication of Jet Airways becoming the first Indian carrier to get a foreign partner, Jet, for the first time, announced that it is in talks with Abu Dhabi-based carrier Etihad for a possible stake sale.
“The discussions are in progress but no terms have been firmed up at present. 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,” Jet informed the BSE on Thursday.
Jet’s confirmation is also likely to put to rest speculations about a possibility of Etihad buying stake in Vijay Mallya-promoted Kingfisher Airlines.
Reportedly, Jet has been in talks with Etihad since September last year for a 24 per cent stake sale. The sale has been valued between Rs 1,500 crore and Rs 1,800 crore, and will be announced within the next 10 days. Reports also say that the Gulf carrier’s board would meet soon to decide on the matter.
Following the statement, shares of Jet Airways rose sharply by about seven per cent to Rs 618.70 on the BSE but closed 4.70 per cent up at Rs 606.85 per share.
The deal between the two, however, will only be complete when Jet Airways takes necessary permissions from the home ministry and the Foreign Investment Promotion Board.
Jet has also said that it had not yet sought any regulatory approval as a deal with Etihad was still to be firmed up.