In a first, Jet Airways to sell 24% stake in Abu Dhabhi’s Etihad for Rs 2,050 crore

April 25, 2013

Abu_Dhabhis_Etihad

Mumbai, Apr 25: Naresh Goyal's Jet Airways and Abu Dhabi carrier Etihad finally enacted a well choreographed tango, clinching the first foreign direct investment ( FDI) deal after foreign airlines were allowed part- ownership of their Indian rivals.

On Wednesday, the Jet Airways board cleared preferential allotment of shares (at Rs 754 apiece) to Etihad, giving the latter a 24% direct stake in India's second largest airline by market share. Etihad will pay $379 million (about Rs 2,058 crore) for the stake, valuing Jet Airways at $1.57 billion, which is 32% higher than the current market value of the domestic carrier.

Etihad will take two board seats even as Goyal will hold 51% stake and remain non-executive chairman of Jet Airways. The Abu Dhabi airline will separately take majority shares in JetPrivilege, the frequent flyer unit of Jet Airways, for $150 million. It has already paid another $70 million to purchase Jet's slots at London's Heathrow airport.

The deal also has the potential to make Abu Dhabi the biggest emerging hub for Indian globe-trotters. Jet said it would establish a Gulf gateway in Abu Dhabi and expand its global reach through Etihad. "It's a game-changing opportunity for Etihad, and a game-changing opportunity for India," Kapil Kaul, regional head of the Centre for Asia Pacific Aviation (CAPA), told Reuters.

Late in the evening, India and Abu Dhabi governments as part of bilateral pacts agreed to increase the flying rights between the two countries to approximately 50,000 seats per week from the current 13,600 per week.

"This transaction further strengthens the balance sheet of Jet Airways and, more importantly, underpins future revenue streams, which will accelerate our return to sustainable profitability and liquidity," said Jet Airways chairman Naresh Goyal.

Etihad president and chief executive James Hogan added, "It (the deal) is expected to bring immediate revenue growth and cost synergy opportunities, with our initial estimates of a contribution of several hundred million dollars for both airlines over the next five years."

Eithad becomes the first big full service global airline to buy into the India story where travel is expected to triple to 159 million in the next 10 years. Earlier this year, Kuala Lumpur based low cost carrier AirAsia announced a joint venture with Tata Group to float a new airline.

The multi-layered deal-making was a complex affair aided by a battery of law firms—Economic Laws Practice, Gagrats, Amarchand Mangaldas and DLA Piper—and investment banks Bank of America Merrill Lynch, Credit Suisse and HSBC. The transaction is subject to shareholder and regulatory approval, which bankers and lawyers expect to come by in the next three months.

In the first phase, people familiar with the transaction, said that Goyal will sell 5% of Jet Airways through an offer for sale (OFS) to comply with the new 25% public shareholding norms. Currently, public shareholding in Jet Airways stands at 20%. This is being done as Sebi rules require a company to first adhere to public shareholding norms before making a preferential allotment.

Goyal and his family through their holding company Tail Winds hold 80% in Jet currently. The pugnacious Indian aviation entrepreneur founded the airline 21 years ago. It now operates a fleet of 100 aircraft and flies to 73 destinations in India and 20 overseas.

People in the legal circles said that the Goyal family will transfer their interests in Tail Winds, which is an overseas corporate body (OCB) incorporated in Isle of Man, a tax haven to their personal names/entities, which will be the new holding company of Jet. This is being done as OCBs are no longer recognized by the RBI and an OCB can't take fresh positions in equity or debt. However, they added, since Tail Winds was given an exemption, the promoter would check with the banking regulator whether they have to the restructure their holding before the launch of the OFS scheme.

The deal with Etihad will bring in fresh money to Jet that will be used to retire debt, which stands at $2.3 billion. Set up in 2003, Etihad, with a fleet of 70 Airbus and Boeing aircraft, serves 86 cities in West Asia, Africa, Australia, Asia, US and Europe.

"The price is good for Jet. I think Etihad may have paid over the odds slightly, but with Kingfisher out of the picture there is only one full service heavyweight in town, and that's Jet," Sudeep Ghai, partner at consultancy Athena Aviation told Reuters.

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News Network
January 30,2020

New Delhi, Jan 30: Tension spiralled in Jamia Nagar on Thursday after a man fired a pistol at a group of anti-CAA protesters, injuring a Jamia Millia Islamia student before walking away while waving the firearm above his head and shouting "Yeh lo aazadi" amid heavy police presence in the area.

Massive protests erupted in the area after the incident with hundreds of agitated people gathering near the university, breaking barricades and clashing with police personnel.

The man, who identified himself as "Rambhakt Gopal", was subsequently overpowered by police and detained. He was taken into custody and was being interrogated, police said.

The entire drama, which triggered panic in the area, was captured by television cameras that showed the man in light coloured pants and a dark jacket, walking away on an empty road barricaded by police, turning around and shouting at the protesters in Hindi, "Here, take this freedom."

The gunman went live on Facebook before the brandishing the gun. Police said they were verifying whether it is his real name.

Before the attack, the man also put out messages on Facebook stating "Shaheen Bhag Khel Khatam" (Run Shaheen, the game is over). Another message stated, "Please wrap me in saffron in my last journey with slogans of Jai Shri Ram". His Facebook profile was deleted after screenshots of his posts were circulated widely on social media platforms.

Several students recapped how their peaceful march on Gandhi's death anniversary became violent.

"We were moving towards the Holy Family Hospital where the police had raised barricades. Suddenly, a gun-wielding man came out and opened fire. One bullet hit my friend's hand," Aamna Asif, a student of economics at the university, told PTI.

She said her friend, Shadab Farooq, a mass communication student, was trying to calm the attacker but he shot at him injuring his left hand.

Farooq, who belongs to Kashmir, was taken to the AIIMS Trauma Centre.

Ragibh Naushad, an LLB student at the university, said, "The Jamia Coordination Committee organised a march to pay homage to Gandhi ji on his death anniversary. It started at 12 noon from Gate number 7, but police denied the permission and stopped the march near the Holy Family hospital.

"A man named Gopal, came there and started brandishing a weapon and later shot a round. He was also chanting pro-CAA slogans."

The incident led to panic in the area.

Khalid Hassan, a JMI alumnus, said initially many were not sure whether it was a gunshot or a tyre burst.

There was heavy police and media presence when the incident took place.

The students were heading from Jamia to Mahatma Gandhi's memorial Rajghat. The march was stopped at the Holy Family Hospital near the university.

Chinmoy Biswal, DCP (southeast), said the students wanted to take out a march from Jamia to Rajghat but were denied permission.

"They were being repeatedly told that the protest should be carried out peacefully. We had barricaded the road just before the Holy Family hospital. Meanwhile, a person was seen in the crowd who waved something which appeared to be a weapon."

"We have detained him and are interrogating him. One person has also been injured," Biswal said.

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Agencies
August 5,2020

Ayodhya,  Aug 5: The Saryu Ghat was seen decorated ahead of the foundation stone-laying ceremony of the Ram Temple in Ayodhya on Wednesday.

In wake of the COVID-19 pandemic, sanitisation work was also done at the Hanuman Garhi temple in the morning ahead of the Prime Minister's visit. Strict security and COVID-19 protocols will be followed at the temple.

Prime Minister Modi will perform 'pooja' at Hanuman Garhi and Shree Ramlala Virajman before performing 'bhoomi pujan' of the Ram Temple in Ayodhya, the Prime Minister's Office (PMO) had informed on Tuesday.

He will unveil a plaque to mark the laying of the foundation stone and also release a commemorative postage stamp on 'Shree Ram Janmabhoomi Mandir'.

Around 175 eminent guests have been invited for the ‘bhoomi pujan’ of the Ram Janmbhoomi Mandir. Besides Prime Minister Modi, RSS chief Mohan Bhagwat, Mahant Nritya Gopaldas Maharaj, Uttar Pradesh Governor Anandiben Patel and Uttar Pradesh Chief Minister Yogi Adityanath will be present on stage.

"175 eminent guests have been invited for the ‘bhoomi pujan’ of Shri Ram Janmbhoomi Mandir. 135 Pujya Sants belonging to 135 spiritual traditions will be present in the programme. Some eminent citizens of Ayodhya have also been invited," as per Shri Ram Janmbhoomi Teerth Kshetra.

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News Network
June 18,2020

New Delhi, Jun 18: The Delhi High Court Thursday asked the Delhi Police to file status report on a plea by Jamia Coordination Committee member Safoora Zargar, who was arrested under the anti-terror law --UAPA -- seeking bail in a case related to communal violence in northeast Delhi during protests against the Citizenship Amendment Act in February.

Zargar, M Phil student of Jamia Millia Islamia University, is more than four months pregnant.

Justice Rajiv Shakdher issued notice to the police and asked it to file a status report on the bail plea.

The high court listed the matter for further hearing on June 22.

Zargar, who was arrested by the Special Cell of Delhi Police on April 10, has challenged the June 4 order of the trial court denying her bail in the case.

The trial court, in its order, had said “when you choose to play with embers, you cannot blame the wind to have carried the spark a bit too far and spread the fire.”

It had said that during the course of investigation a larger conspiracy was discernible and if there was prima evidence of conspiracy, acts and statements made by any one of the conspirators, it is admissible against all.

The court had said that even if there was no direct act of violence attributable to the accused (Zargar), she cannot shy away from her liability under the provisions of the Unlawful Activities (Prevention) Act (UAPA).

However, the trial court had asked the concerned jail superintendent to provide adequate medical aid and the assistance to Zargar.

The police had earlier claimed that Zargar allegedly blocked a road near Jaffrabad metro station during the anti-CAA protests and instigated people that led to the riots in the area.

It further claimed that she was allegedly part of the “premediated conspiracy” to incite communal riots in northeast Delhi in February.

Communal clashes had broken out in northeast Delhi on February 24 after violence between citizenship law supporters and protesters spiralled out of control leaving at least 53 people dead and scores injured.

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