Paving the way for Jet Airways’ proposed sale of 24 per cent stake to Abu Dhabi-based Etihad, market regulator Securities and Exchange Board of India (SEBI) has felt that the deal in its revised form does not give controlling powers to the foreign carrier, and is in compliance with the regulations.
After studying the revised structure, SEBI has observed that the Rs.2,058-crore 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. However, SEBI has left it to the government to take a final call on the revised Commercial Co-operation Agreement (CCA) proposed by Jet and Etihad Airways, sources said, while adding that these observations had been issued as per the given facts about the proposed deal. The deal was announced in April, and has been stuck due to objections from regulators, including SEBI and the Competition Commission of India, as also other agencies, as it was deemed to yield significant control of the airline to Etihad.
