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Jet Airways soars 19% on Etihad bailout plan acceptance report

According to the proposed deal, Founder Chairman Goyal will step down from the board of directors and relinquish his decision-making powers, said a Business Standard report

SI Reporter  |  New Delhi 

Jet Airways

Shares of climbed as much as 18.57 per cent to Rs 281.50 apiece on BSE after a report suggested Naresh Goyal-controlled has agreed with most of the conditions set by its partner Etihad for offering a lifeline to the debt-laden domestic carrier.

According to sources, the airlines are set to sign a memorandum of understanding (MoU) within days. According to the proposed deal, Founder Chairman Goyal will step down from the board of directors and relinquish his decision-making powers, said a Business Standard report. CLICK HERE TO READ FULL REPORT

At 09:53 am, the stock was trading 11.29 per cent higher at Rs 264.20 apiece on BSE. In comparison, the benchmark S&P BSE Sensex was 139 points up at 36,396 levels.

The final agreement is expected to push up Etihad’s stake to 40 per cent from 24 per cent. The legal formalities around the deal and the way ahead will be decided at the Jet board meeting on February 14, to be followed by an extraordinary general meeting scheduled for February 21, the report added.

Meanwhile, Jet Airways' CEO Vinay Dube said the is very close to finding a solution to the airline's financial crisis and has sought their support.

"Our chairman, the board of directors and your management team are working hard on a balance sheet transaction that will help us eliminate our current challenges. In fact, the airline’s key stakeholders are actively engaged towards finalization of the resolution plan. We are very close and I ask for your continued patience," Dube wrote in an email to staff on Thursday. READ MORE

First Published: Fri, February 01 2019. 10:05 IST
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