Naresh Goyal trims stake ahead of Etihad stake sale

Jet Airways board to meet on Wednesday to approve stake sale

Jet Airways promoter Naresh Goyal trimmed 7.89% stake held under Tail Winds Ltd  worth Rs 211 crore in block deals today. The stake sale is a precursor to the issue of 24% equity to Etihad Airways.

Last week the two airlines received clearance from Competition Commission of India paving the way for Gulf airline's Rs 2060 crore investment in the Indian airline.

According to a source Jet Airways board is meeting on Wednesday to approve the preferential allotment of equity to Etihad.

The allotment may take place the same day, he added. The board will also finalise appointments of Etihad's CEO James Hogan and Etihad's CFO James Rigney on its board.

Monday's stake sale of 68 lakh shares which represent the entire stake of Tail Winds Ltd  was carried out in a series of bulk deals and the equity was purchased by several Indian and foreign institutional investors. Goyal still owns 67.10% shares in the airline.

The purchasers in today's transaction include Merrill Lynch Capital Markets which purchased 29 lakh shares and Deutsche Securities Mauritius Limited which bought 12.6 lakh shares.

"Etihad Airways is being treated as a public share holder and the airline felt that there should be sufficient free float post issue of equity to Etihad so the promoters decided to dilute their shareholding,'' said an airline executive. Separately Securities and Exchange Board of India too asked Goyal to bring down his stake to 51% in ordinary share holders' interest.

Post allotment to Etihad the share holding pattern of Jet Airways will have Goyal owning 51%, Etihad getting 24% and balance will be public share holding.

Shares of Jet Airways closed at 310.40 down 4.39% over the previous close.