The Etihad board met today in Abu Dhabi to discuss its India investment plans, funding options and other acquisition targets. However, the meeting was inconclusive,reports CNBC-TV18’s Kritika Saxena quoting sources.
It is learnt the Etihad senior management prefers Jet airways to Kingfisher but announcement or the signing of the term sheet however has been deferred by a few days. Sources add that Etihad is not happy with the second revival report. Kingfisher Airlines had suggested that it intends to reach around USD 200 million EBITDA in three years.
Etihad has raised concern that there is no clarity on how KFA plans to reach that target. It has has also indicated that promoters need to give clarity on the exact amount of capital that will be coming in from promoters. In addition to that, it has said that there is no intention of taking management control. While if it goes ahead and acquire 48 percent in Kingfisher Airlines, it will probably have to take in a part of the management control.
According to sources, there will be multiple meetings. From a legal and a tax point of view it is a very complicated deal.