Ending months of suspense and speculation over Etihad Airways’ 24% stake acquisition in Jet Airways, market regulator Sebi said the UAE carrier has not gained control of India’s leading carrier and need not make an open offer to Jet Airways shareholders. The Sebi order came after a show-cause notice to the two airlines following the $379-million deal in April 2013.
The show-cause notice had asked the Gulf carrier to explain why it should not make an open offer to the non-promoter shareholders under the takeover code. Sebi and several people in the market had then thought that the Abu Dhabi-based airline may wrest control of the Indian carrier from its promoters — Naresh Goyal and family.
After several rounds of meetings with the regulator and the lawyers from the two airlines, Sebi whole-time member Rajeev Kumar Agarwal ordered that there was no reason to conclude Etihad was gaining control of Jet Airways through the deal.
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