Etihad mulls revision of Jet agreement

UAE-based Etihad Airways is mulling to revise agreement for its Rs 2,058 crore deal with Jet Airways. The reworked arrangement may be resubmitted to the regulatory authorities by the end of July, reports Kritika Saxena of CNBC-TV18. Sources have told the channel that Etihad is unwilling to give up the right of first refusal (ROFR) clause.

Also read: CVC seeks report from Aviation Ministry on Jet-Etihad deal Essentially, the amended agreement would be given to the Securities and Exchange Board of India (Sebi) and other necessary regulators. Their deadline expires at the end of July, which is a bit of a concern on the deal front. In terms of the details, they are not open to changing the ROFR clause in the agreement, which was a cause for concern for the authorities. They are finalising their details. But Etihad says that without the clause, will not have a protection of their investment in India. The equity that they will receive would not have protection considering Etisalat disappointing fate here. Apart from that, they are open to relinquishing and giving voting rights to chairman Naresh Goyal. They are also open to giving up the right to vote investor directors. There are a couple of clauses that they are open to doing. But they are not willing to give up on the ROFR.