Jet Airways-Etihad Airways accept riders laid by FIPB

Jet Airways and UAE-based Etihad Airways, which received a green nod from Foreign Investment Promotion Board (FIPB) for stake sale deal on Monday, have accepted the riders laid by the government body, reports Kritika Saxena of CNBC-TV18.

Etihad had first agreed in April to buy a 24 percent stake in Jet in the first such deal since the Indian government allowed foreign airlines to own up to 49 percent of Indian carriers last September. On Monday, FIPB cleared the controversial Jet-Etihad deal with certain conditions which included clearance of all the future changes in the deal by the government, dispute resolution under Indian law and arbitration under English law and that the article of amendment will override the shareholders’ agreement.
Now the airlines are making some basic changes in the shareholders’ agreement. Once the changes are made and once all the papers are finalized, the deal will be going to the Cabinet Committee on Economic Affairs (CCEA) for its final approval. CCEA is likely to rush up the process.
So once the regulatory approvals come in, the airlines are expecting a quick 10-15 day period in order to finally make the 24 percent sale and get the cash in.