press trust of india
NEW DELHI, 14 JUNE: The Rs 2,058-crore deal struck by Jet Airways to sell 24 per cent of its stake to Abu Dhabi’s Etihad Airways was put on hold today by the government’s foreign investment approving agency which sought more clarity on control and ownership of the Indian airline.
“It (Jet-Etihad proposal) has been deferred. We need more details on effective control and ownership,” economic affairs secretary Mr Arvind Mayaram, who heads the Foreign Investment Promotion Board (FIPB),” told reporters after a meeting here.
Market regulator Sebi and competition watchdog CCI have already sought clarifications from the premier private carrier on the transaction, to ensure that Etihad’s ownership powers in Jet remains in line with its 24 per cent stake in the company’s equity capital.
Asked about the development, civil aviation minister Mr Ajit Singh said Sebi has raised some concerns and asked both the airlines to “rectify some parts of the pact.” “I don’t see any major problem for the deal,” Mr Singh said. When contacted, Jet sources said they have already submitted the necessary clarifications to Sebi.
It could not be ascertained when the FIPB would take up the Jet-Etihad proposal next. Once the FIPB clears it, the matter would be sent to the Cabinet Committee on Economic Affairs for approval. All deals over Rs 1,200 crore have to be approved by CCEA.