MUMBAI: Etihad Airways has said it can only invest up to Rs 1,700 crore in Jet AirwaysNSE -4.98 %, a fraction of what the grounded airline needs for survival. The Abu Dhabi carrier is also noncommittal on Jet’s dues and has demanded a one-time settlement in a highly conditional bid it submitted on Friday.
The conditions leave little scope for Jet Airways, its employees and investors to pin their hopes on the Gulf carrier as its saviour. It also means the grounded airline’s lenders have ..
“Etihad did not put in a binding bid. In a way, the bidding process didn’t take off the way it should have,” a person familiar with the development told ET.
“As a minority shareholder, Etihad can only bring in cash required to retain its stake of 24%. The rest is up to the people managing the process,” said a person with knowledge of the matter.
“As a minority shareholder, it is not for Etihad to take on the debt and liabilities. Etihad is only interested in the company being run well by a professional management with proper governance and the right professional board,” said the person.
One of its key conditions has been that it won’t raise its stake above 24%. Etihad isn’t ready to implement an open offer that, according to Indian capital market norms, is triggered as soon as the shareholding of an entity in a company crosses 25%. Goyal owns 51% of Jet and has pledged just over 31% of his stake. The public owns 25%.
A senior Etihad executive said it had helped Jet cope with financial challenges several times in the past.
“Over the past five years Etihad has i ..
The conditions leave little scope for Jet Airways, its employees and investors to pin their hopes on the Gulf carrier as its saviour. It also means the grounded airline’s lenders have ..
“Etihad did not put in a binding bid. In a way, the bidding process didn’t take off the way it should have,” a person familiar with the development told ET.
“As a minority shareholder, Etihad can only bring in cash required to retain its stake of 24%. The rest is up to the people managing the process,” said a person with knowledge of the matter.
“As a minority shareholder, it is not for Etihad to take on the debt and liabilities. Etihad is only interested in the company being run well by a professional management with proper governance and the right professional board,” said the person.
One of its key conditions has been that it won’t raise its stake above 24%. Etihad isn’t ready to implement an open offer that, according to Indian capital market norms, is triggered as soon as the shareholding of an entity in a company crosses 25%. Goyal owns 51% of Jet and has pledged just over 31% of his stake. The public owns 25%.
A senior Etihad executive said it had helped Jet cope with financial challenges several times in the past.
“Over the past five years Etihad has i ..
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