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Journalism of Courage
Abu Dhabi8217;s Etihad Airways confirmed it had taken a 24 percent minority stake in Naresh Goyal8217;s Jet Airways for 379 million.
The Gulf carrier said in an emailed statement it would subscribe to 27.3 million new shares at 754.74 rupees per share.
Jet said in a brief statement to the stock exchange earlier on Wednesday that its board had approved the allotment to Etihad.
Etihad,which is on an aggressive expansion drive,will also make a 150 million equity investment in Jet8217;s frequent flyer programme and spend 70 million to buy Jet8217;s three pairs of Heathrow slots through the sale and leaseback agreement announced in February.
Jet8217;s majority ownership will remain with Indian nationals and Jet8217;s founder and non-executive chairman Naresh Goyal will hold 51 percent of the airline after the deal,which is subject to shareholder approval,the statement added.
As part of the deal Jet will establish a hub in Abu Dhabi and expand its reach through Etihad Airways8217; global network.
