India's Jet founder company to sell shares to comply with rules
April 29 (Reuters) - A founder group company of India's Jet Airways will sell shares to funds and other investors to comply with a rule that requires companies to have a minimum 25 percent public shareholding, the carrier said on Monday.
Abu Dhabi's Etihad Airways last week agreed to acquire a 24 percent stake in India's No. 1 carrier Jet, giving it a bigger foothold in the fast-growing aviation market.
Tail Winds Ltd, which owned almost 80 percent of Jet before the deal, will transfer a majority of its stake to Jet owner Naresh Goyal, and sell additional shares to funds and other investors to comply with the public float rules, the carrier said in a stock exchange filing.
Funds and other investors currently own 20 percent of Jet. At the stock's current market value, the additional 5 percent stake, or roughly 11.1 million shares, could be worth 6.8 billion rupees ($125 million).
The airline did not set a time frame for selling additional shares to public, but the markets regulator has set a deadline of June-end for meeting the shareholding requirement.
Goyal will own 51 percent of Jet after the Etihad deal. Jet Airways has called a meeting of shareholders on May 24 to seek their approval for the deal. ($1 = 54.3950 Indian rupees) (Reporting by Devidutta Tripathy and Sumeet Chatterjee; Editing by Subhranshu Sahu)