Etihad likely to finalise investment soon, Jet ends 3% up
Country's largest private airline company Jet Airways gained as much as 4.4 percent on Tuesday as sources said the board members of Abu Dhabi-based Etihad Airways are likely to meet next week to finalise investment in India.
January 01, 2013 / 16:19 IST
Country's largest private airline company Jet Airways gained as much as 4.4 percent on Tuesday as sources said the board members of Abu Dhabi-based Etihad Airways are likely to meet next week to finalise investment in India.
CNBC-TV18 reported quoting sources that Etihad's board is likely to consider proposals of both Jet Airways and Kingfisher Airlines.
It is learnt that Etihad-Jet talks may factor in two-part deal. Jet promoters hold 80% in the company through Tail Winds and is likely to issue warrants which can be converted to equities later. Post deal, Etihad is likely to hold 22-24% in Jet which currently has a debt of USD 2.3 billion. The stock fell 3.35 percent to close at Rs 576.90 on the Bombay Stock Exchange.
Meanwhile, the Gulf carrier may also consider revival plans of Kingfisher. Earlier, Etihad had sought more clarity on operations and fund infusion from UB Group. According to sources, Etihad wants all dues cleared ahead of any possible deal. Kingfisher lost 3.15 percent to Rs 14.45.Kingfisher Airlines dives 5% on flying permit expiry Cut in aviation turbine fuel (ATF) prices may be another reason behind spike in share prices of airline companies. SpiceJet rose 2.61 percent to Rs 45.15.Indian Oil Corporation has cut ATF prices by Rs 1,472.92 per kilolitre in Delhi and Rs 12.18/KL in Kolkata from today whereas the company hiked prices by Rs 54.11/kL in Mumbai and by Rs 282.05/kL in Chennai. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
