Jet Airways to clear Etihad stake sale this week

Victoria
By Victoria April 24, 2013 11:59

Jet Airways to clear Etihad stake sale this week

This week the board of Jet Airways, India’s second-largest airline by passengers carried, is set to consider and approve the proposal for selling a 24% stake to Etihad Airways for more than $300 million.

The Abu Dhabi-based national airline of the UAE will acquire shares by way of new stock and the dilution of promoter Naresh Goyal’s 80% holding.

On 31 December 2012, Jet’s debt stood at $2.16 billion. Apart from selling a 24% stake to Etihad, Jet Airways is expected to sign an agreement to lease its Airbus 330 plane to Etihad, thereby raising additional funds that it could use to repay high-cost debt. Earlier this year, the UAE airline purchased the Heathrow airport slots of Jet Airways for $70 million.
Jet Airways is also expected to get loans of about $300 million from the lenders of Etihad Airways at a 3% interest rate.

Victoria
By Victoria April 24, 2013 11:59
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