Share values of Jet Airways of India had increased by as much as 13% after a news report on CNBC TV18 said that Etihad Airways of Abu Dhabi would be purchasing as much as 12% of the budget airline directly from its promoters. The reported price was pegged at Rs750 or US$13.75 per share. It further reported that the Abu Dhabi based airline would purchase the remaining stake through issuance of preferential shares.
According to Reuters, Etihad is deep in discussions with Jet for a possible 24% stake in the Indian carrier.
This deal would be the first after Indian regulators opened up ownership rules for air carriers in India. As it stands, foreign companies can own up to 49% of Indian carriers.
Etihad Airways is reportedly on an acquisition spree to compete with fellow regional airlines such as Qatar Airways and Emirates. Aside from Jet, the company has purchased stakes in Virgin Australia and Aer Lingus while it also has increased its stockholdings in Air Berlin and Air Seychelles.
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