April 29 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)