Jet Airways soars 8.5%, Etihad deal awaits CCEA nod

Moneycontrol Bureau

Shares of Jet Airways are flying off the counter thick and fast as the Etihad deal is gathering steam. The stock gained around 8.5 percent in morning trade on Thursday, in addition to a rally of about over 6 percent in the last three trading sessions.

The Cabinet Committee on Economic Affairs (CCEA) is likely to take up the Jet-Etihad deal later today.

Earlier, market regulator Securities and Exchange Board of India (Sebi) approved the Jet Airways' proposed sale of 24 percent stake to Abu Dhabi-based Etihad Airways.

Sebi has also added that after the revised structure, the Jet-Etihad deal should not trigger a mandatory open offer for purchase of shares from public shareholders and Etihad would not be considered a promoter entity in Jet.

In addition, Sebi has asked Naresh Goyal-led Jet promoters to divest a 6 percent stake before allotting the shares to Etihad "in the interest of corporate governance and to ensure well dispersed public shareholding."

Goyal would eventually have a 51 percent stake in the company, Etihad 24 percent and the public the remaining 25 percent.

With inputs from PTI

(Posted by Nasrin Sultana)