Jet-Etihad eye Sebi, CCI nods this week
5 Aug 2013 11:06 PM GMT
After sailing through the government's foreign investment approval body, Foreign Investment Promotion Board (FIPB), with some riders, the Rs 2,058-crore deal between Jet Airways and Etihad will be knocking on the doors of the capital markets regulator, Securities and Exchange Board of India (Sebi), and the fair trade watchdog, Competition Commission of India (CCI) this week.
Having agreed to various conditions and changes in their original shareholder agreement for Abu Dhabi-based Etihad's proposed purchase of 24 per cent stake in Naresh Goyal-led Jet, the two companies are hopeful that the deal would pass the muster with the two regulators. Concerns about a possible change in control of Jet Airways in favour of Etihad, with just a 24 per cent stake, were first raised by Sebi and CCI and these became the main reasons for the proposed deal getting stuck for weeks together.
The deal was cleared by FIPB late last month only after the two parties agreed to suitably change their shareholder agreement to address the control-related and other concerns raised by the regulators. As a result, the two companies are hopeful of winning over at least one regulator's go-ahead this week itself for their deal, which happens to be the first foreign direct investment (FDI) by a foreign airline into India.
Having agreed to various conditions and changes in their original shareholder agreement for Abu Dhabi-based Etihad's proposed purchase of 24 per cent stake in Naresh Goyal-led Jet, the two companies are hopeful that the deal would pass the muster with the two regulators. Concerns about a possible change in control of Jet Airways in favour of Etihad, with just a 24 per cent stake, were first raised by Sebi and CCI and these became the main reasons for the proposed deal getting stuck for weeks together.
The deal was cleared by FIPB late last month only after the two parties agreed to suitably change their shareholder agreement to address the control-related and other concerns raised by the regulators. As a result, the two companies are hopeful of winning over at least one regulator's go-ahead this week itself for their deal, which happens to be the first foreign direct investment (FDI) by a foreign airline into India.
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