Jan 27, 2013, 10.03 AM IST | Source: CNBC-TV18

Jet Airways shares rise on Etihad deal hopes

Shares of Jet Airways gain 5 percent on continuing speculation that Abu Dhabi's Etihad Airways will buy a stake in the carrier, the first such investment by a foreign carrier in an Indian airline since rules were relaxed last year.

Shares of Jet Airways closed Friday’s session up 4.26 percent on continuing speculation that Abu Dhabi's Etihad Airways will buy a stake in the carrier, the first such investment by a foreign carrier in an Indian airline since rules were relaxed last year.

CNBC-TV18's Kritika Saxena learns that in an important senior executive meet of senior Etihad leaders, Etihad has agreed on the structure and valuation of the jet deal. The channel had earlier reported this week, Jet has been valued at USD 1.25 billion. This comes up to around USD 330 million dollars for a 24 percent stake.

Also read: Etihad may value Jet Airways stake at $1.25bn; stock up 3%
 
Sources say the deal will be a combination of warrants and equity. Jet is looking at expanding their international routes across United States (US), across Middle East.

Etihad senior executives will be appointed to look into the India plans as well. The officials are likely to ask Jet for further clarity on what Jet plans to do with its India plans going forward.

Jet Airways stock price

On April 17, 2014, Jet Airways closed at Rs 280.40, up Rs 5.70, or 2.07 percent. The 52-week high of the share was Rs 688.60 and the 52-week low was Rs 210.25.


The latest book value of the company is Rs -27.75 per share. At current value, the price-to-book value of the company was -10.10.

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