| Log in

Naresh Goyal sells 7.9% in Jet Airways for $34M

21 November, 2013

Jet Airways promoter and chairman Naresh Goyal has sold around 7.9 per cent of his 75 per cent holding in the Indian carrier held through his private investment arm for around Rs 210 crore ($34 million) on Monday to a clutch of FIIs. This comes right ahead of completing a transaction to sell 24 per cent to Abu Dhabi’s Etihad.

Post equity dilution with fresh issue to Etihad, Goyal would hold around 51 per cent stake, as per VCCircle estimates.

Goyal’s privately held overseas investment arm Tail Winds Ltd sold shares to FIIs such as Merrill Lynch and Deutsche Securities on Monday at Rs 310 apiece. This is less than half the price at which Etihad Airways is subscribing to new shares of the second-largest Indian airlines.

Last week, the Competition Commission of India (CCI) gave its green signal to Etihad to buy 24 per cent stake in Jet Airways Ltd for $379 million, providing the final ground clearance to the multi-million dollar deal.

Simultaneously, Etihad is putting $150 million to buy a majority stake in Jet Privilege, the frequent flier programme of the airlines. The final deal closure is now expected in a week.

Post share issue to Etihad, the total holding of Goyal and Etihad would be around 75 per cent.

In May this year, Goyal had transferred around 29 per cent stake in the firm from Tail Winds to himself in a stock market transaction worth Rs 1,434 crore ($257 million then) at Rs 570 a share. Soon thereafter he transferred another tranche of 36.8 per cent stake from his privately held overseas entity to his own name through a stock market transaction worth Rs 1,670 crore ($296 million).

Tail Winds held around 7.9 per cent stake in Jet Airways as of September 30, 2013 and with the transaction on Monday is no longer a shareholder of the firm. As of now, Goyal holds 67.1 per cent of Jet Airways which will dilute with the proposed share sale to Etihad.

(Edited by Joby Puthuparampil Johnson)


Leave Your Comment
Naresh Goyal buys 29% stake in Jet Airways from overseas entity for $257M

Naresh Goyal buys 29% stake in Jet Airways from overseas entity for $257M

TEAM VCC 5 years ago
Jet Airways chairman Naresh Goyal has transferred around 29 per cent stake in...
Naresh Goyal transfers additional 36.8% stake in Jet Airways from overseas entity for $296M

Naresh Goyal transfers additional 36.8% stake in Jet Airways from overseas entity for $296M

TEAM VCC 5 years ago
Jet Airways chairman Naresh Goyal has transferred another tranche of stake from...
Etihad completes deal to buy 24% of Jet Airways

Etihad completes deal to buy 24% of Jet Airways

Bhawna Gupta 4 years ago
Abu Dhabi-based Etihad has completed the deal to buy 24 per cent in Jet Airways...
No Comments

Naresh Goyal sells 7.9% in Jet Airways for $34M

Powered by WordPress.com VIP