Jet stock flies 13% as Etihad deal provides fuel

Business

oi-Sunil

By Sunil Fernandes

Published: Thursday, April 25, 2013, 10:02 [IST]

Shares in Jet Airways soared almost 13 per cent in trade today, following a deal with Etihad in which the latter will pick a stake in the company.

On Wednesday, Jet said that it was issuing 2.73 crores shares to the Abu Dhabi based Etihad. The deal was struck at a price of not less then Rs 754.73 per share.

"Jet Airways India informed BSE that the Board of Directors of the Company at its meeting held on April 24, 2013, has approved, subject to compliance with applicable laws and regulations, shareholders and other necessary approvals, the issuance, by way of a preferential allotment pursuant to the provisions of of the Companies Act, 1956 and other applicable legal provisions," the company said in a release.

The approval of the shareholders for such issuance and allotment will be sought at an Extraordinary General Meeting to be held in this regard. The Board of Directors has granted approval for the Company and Etihad PJSC to enter into inter alia, the Investment Agreement in relation to such issuance and allotment and other documents incidental thereto.

The Etihad-Jet deal has been in the pipeline for quite a while now and today's decision by Jet is likely to help fresh cash infusion into the company, which is saddled with huge debts on its books.

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