Abu Dhabi based Etihad Airways on 24 April 2013 confirmed taking over of 24 per cent minority stake in Jet Airways for 379 million dollars (2058 Crore).
With the take over Etihad Airways will be subscribing to 27.3 million new shares at 754.74 rupees per share. It will be the first time that a foreign airline will be picking up a stake in an Indian airline.
Etihad Airways is on an aggressive expansion drive and is also going to make a 150 million Dollars equity investment in Jet's frequent flyer programme and spend 70 million Dollars to buy Jet's three pairs of Heathrow slots through the sale and leaseback . Including the 379 million dollars equity investment, Etihad will drive in all around 600 million dollars into Jet Airways.
It is important here to note that Jet's majority ownership will remain with Indian nationals and Jet's founder and non-executive chairman Naresh Goyal will hold 51 per cent of the airline after the deal, which is subject to shareholder approval.
Also, as a part of the deal Jet will establish a hub in Abu Dhabi and expand its reach through Etihad Airways' global network.
The partnership is supposed to bring in significant benefits and opportunities for global growth to both airlines. The deal will allow Etihad Airways to compete more effectively in one of the largest and fastest-growing markets in the world.