Jet changes ownership structure to meet FDI norms

Airline will seek shareholder approval for Etihad stake sale on May 24

As part of the new shareholding structure to comply with the government’s foreign direct investment (FDI) norms, Jet Airways promoter Naresh Goyal will directly own 51 per cent stake in the airline company. The change had been necessitated after Abu Dhabi-based Etihad Airways decided to buy a 24 per cent stake in Jet for about Rs 2,054 crore.

The airline would hold an extraordinary general meeting (EGM) on May 24 to seek shareholders’ approval for allotment of 27 million preference shares of Rs 754.73 each to Etihad.

At present, Goyal owns 80 per cent in the airline — 79.99 per cent through the Isle of Man-registered Tail Winds Ltd. In its EGM notice, sent to stock exchanges on Monday, the airline said Tail Winds would divest shares to comply with Sebi’s 25 per cent public shareholding norm and transfer the shares to Goyal. After this exercise, Tail Winds will not own any stake in the company. Sources said the divestment would be through the offer-for-sale route where over 10 per cent of shares would be offered.