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Etihad Airways and Jet Airways move ahead with strategic alliance following final approvals

21-Nov-2013 10:10 AM

Etihad Airways and Jet Airways announced (20-Nov-2013) that both airlines closed the transaction for the subscription of a 24% equity stake by Etihad Airways in Jet Airways. All requisite Indian regulatory approvals had been obtained by 12-Nov-2013. Jet Airways has, on 20-Nov-2013, issued and allotted 27,263,372 equity shares of a face value of INR10/share at a price of INR54.7361607 per equity share on a preferential basis to Etihad Airways. Consequent to the allotment, the paid up share capital of Jet Airways stands increased to 113,597,383 equity shares of INR10/share. Following this issue and allotment of the said equity shares on a preferential basis to Etihad Airways, Etihad Airways holds 24% of the post issue paid up share capital of Jet Airways (on a fully diluted basis). Additionally, James Hogan and James Rigney, being nominee directors of Etihad Airways, have been appointed as additional directors on the board of directors of Jet Airways as from 20-Nov-2013. Jet Airways chairman Naresh Goyal said: β€œThe infusion of foreign direct investment in the aviation sector will result in economies of scale, grow traffic at our airports, and create job opportunities. I am confident that this investment will greatly benefit all our stakeholders whilst significantly benefitting our customers who will now have access to a more expanded global network.” Etihad Airways president and CEO James Hogan said: β€œIndia is one of the largest and fastest-growing markets in the world and a key part of the Etihad Airways growth strategy. Through this association, Etihad Airways and Jet Airways will both be strengthened, as will the economies of India and the UAE. By linking our two networks and adding new flights, new routes and more code-share options, travel to, from and within India will become much easier.” Mr Goyal and Mr Hogan confirmed that the collaboration between the airlines would commence immediately and specific details will be released progressively. [more - original PR] [more - original PR - II] [more - original PR - Disclosure] [more - original PR - Board Resolutions] [more - original PR - Board Meeting] [more - original PR - Securities and Exchange Board]