Jet Airways promoter and chairman Naresh Goyal will bring down his stake in the airline to 51 per cent to meet the Sebi requirement of 25 per cent floating shares as Etihad acquires 24 per cent stake in the carrier.
Tail Winds Ltd,which owned almost 79.99 per cent of Jet before the deal,will divest the number of equity shares of Jet as is required to comply with the 25 per cent public float requirement as per Clause 40A of the Listing Agreement with stock exchanges. Tail Winds Limited will transfer its balance shareholding in the company to Naresh Goyal,a nonresident Indian and a promoter of the company, Jet said in a stock exchange filing on Monday.
Jet also said Etihad has the right to appoint three directors on the board of the company.
The preferential allotment to Etihad will not result in a change in the control of the company, it said. The filing has made it clear that the investor (Etihad) will not be treated as a promoter and no lock-in restriction will be applicable.
Unless otherwise determined in accordance with applicable law,the investor and its affiliates should not be treated as a promoter or as part of the promoter group of the company by virtue of subscribing to the shares of the company, Jet said.