Etihad Airways submitted a binding bid to retain a minority stake in Jet Airways, raising fresh hopes for the revival of Jet Airways. Currently, Etihad owns 24% in Jet Airways, under the current rule, it can take this to 49%.
Friday was the last day for submitting its sealed bids to SBI Capital Markets Ltd ( SBI Caps) for prospective investors for Jet Airways.
Etihad Airways confirmed its interest in re-investing in minority state in India’s Jet Airways, is subject to conditions.
However, Abu Dhabi based carrier contended that Etihad alone cannot revive Jet Airways, which is inactive from mid- April due to a paucity of funds. SBI Caps confirmed that it has received the sealed bid from Etihad Airways and contended that it will be submitted to lenders for examination.
Under the FDI regulations, a foreign airline can only have 49% stake in an Indian Airline, with majority control in the hands of Indian Partner. It has been reported on 16 April 2019 that Etihad Airways, India’s National Investment and Infrastructure Fund ( NIIF) and private equity firms TPG Capital and Indigo Partner were Shortlisted to place binding bids for Jet Airways.
The Financial details of Etihad’s bid were not immediately known, it has been reported on 22 April 2019 that Etihad Airways asked Jet lenders to take 80% cut so that it could start fresh bid. If the offer is accepted, 11 banks will be coerced to make sizeable write-offs to their exposure to Jet Airways.