The consortium of banks will constitute 32 percent of Jet, while Etihad and the NIIF will account for nearly 24.9 percent and 19.5 percent, respectivelyNew Delhi: A consortium of lenders, led by State Bank of India, together with Abu Dhabi-ownedEtihad Airways and the National Investment and Infrastructure Fund (NIIF) are planning investments of around Rs 3,400 crore in the debt-laden Jet Airways. The move will result in a change in management control and a drop in stake for founder Naresh Goyal, with banks owning the biggest stake.
Banks to hold majority stake
The consortium of banks will constitute 32 percent of Jet, while Etihad and the NIIF will account for nearly 24.9 percent and 19.5 percent, respectively after the infusion, sources said. Goyal’s stake will drop from 51 percent to 20 percent as he will also be removed from management control and board membership, the source said. However, he is set to retain his status as a promoter.
“Both NIIF and Etihad funds will be converted into equity at a rate of Rs 150 per share,” said the person.
Since Etihad’s stake won’t go beyond 25 percent even after the equity infusion, a waiver from the country’s Securities and Exchange Board for a subsequent public offer will not be needed. The lenders will get their stake in Jet at Rs 1 per share.
Jet Airways, which has not responded to queries, ended at Rs 232.55 on the BSE on Friday, up 3 percent.
Management still unknown
On the Jet Airways earnings conference call on Friday, the management did not mention who the promoter would be after the change in ownership structure.“Jet Airways will continue the structure of a professionally run management reporting to the board of directors,” CEO Vinay Dube said.
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