Jet Airways surges, Etihad deal on track
The airline major has sold and leased-back for own use three pairs of Heathrow Airport parking slots at London for $70 million to Etihad Airways.
Jet Airways (India) has surged 7% to Rs 574 in early morning trades, extending its previous day’s 19.4% rally, on reports that company has sold (and leased-back for own use) three pairs of Heathrow Airport parking slots at London for $70 million to Etihad Airways.
Etihad said it remains in talks to buy a stake in the Indian carrier.
Under the terms on Wednesday’s first stage of the deal, after selling the slots to Etihad, Jet would lease those back from it and continue to fly to London. Etihad, on the other hand, would use those as a collateral for an undisclosed amount of low-interest loan it would give Jet to finance Goyal’s expansion plans. Analysts say the loan amount could be close to $400 million (Rs 2,120 crore), at an interest rate of only three per cent.
The stock opened at Rs 580 and hit a high of Rs 582 on NSE. A combined around 1.8 million shares have changed hands on the counter till 0935 hours on NSE and BSE.
Etihad said it remains in talks to buy a stake in the Indian carrier.
Under the terms on Wednesday’s first stage of the deal, after selling the slots to Etihad, Jet would lease those back from it and continue to fly to London. Etihad, on the other hand, would use those as a collateral for an undisclosed amount of low-interest loan it would give Jet to finance Goyal’s expansion plans. Analysts say the loan amount could be close to $400 million (Rs 2,120 crore), at an interest rate of only three per cent.
The stock opened at Rs 580 and hit a high of Rs 582 on NSE. A combined around 1.8 million shares have changed hands on the counter till 0935 hours on NSE and BSE.