Indian regulator clears Etihad's Jet Airways stake deal

Regulator says Etihad does not need to conduct a tender offer for shares in Jet following 24% stake purchase
Indian regulator clears Etihad's Jet Airways stake deal
By Reuters
Thu 08 May 2014 04:27 PM

India's market regulator said Etihad Airways' purchase of a 24 percent stake in Jet Airways (India) Ltd did not amount to a change in ownership and thereby ruled the Abu Dhabi-based carrier does not need to conduct a tender offer for shares in the domestic carrier.

The ruling comes after the Securities and Exchange Board of India (SEBI) had issued a show cause notice to Etihad in February asking the Abu Dhabi airline on why it should not have to make a tender offer to Jet public shareholders as part of India's takeover code.

SEBI was examining whether the share sale agreement between the two airlines amounted to an acquisition of joint control in the Indian airline.

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.