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Thursday, 29 November, 2018, 12 : 00 PM [IST]

Jet Airways may cede reins to Etihad, puts Tatas' proposal on back burner

Abu Dhabi-based airline may also bring in an Indian entity to invest in the troubled carrier
As per the reports of Buisness Standards (BS), Naresh Goyal, Founder and Chairman, Jet Airways, is said to have agreed to give up its controlling stake, paving the way for Abu Dhabi-based Etihad Airways to increase its holding in the troubled Indian airline up to 49% — the maximum permissible limit for a foreign entity.

At present, Etihad owns 24% of Jet Airways, while Goyal holds a 51% stake.
According to sources, Goyal, who has been reluctant to give up control, is now preferring Etihad’s offer to the ones being discussed with Tata Sons and other private equity funds.

“He has agreed to give up control. It was imperative,” said a person privy to the developments. If the deal materialises, Etihad will increase its stake to 49% and, in return, the West Asian carrier will infuse cash through equity and loans.

“Etihad is likely to bring in another Indian entity, which too can invest alongside,” said a source. It is learnt that the airline is in talks with NRI businessman Yusuf Ali, the owner of Lulu Group, which owns hypermarket stores and shopping malls. Ali had joined the Air India board as an independent director in 2010. He has also invested in Cochin International Airport and sits on its board.

 (Source: BS)

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