Jet Airways shares up over 4% in morning trade on Sebi order

Shares of Jet Airways on Friday rose by over 4 per cent after market regulator Sebi said Abu Dhabi carrier Etihad does not have to make an open offer for the Indian company’s shareholders pursuant to the Rs 2,060 crore stake deal between them.

Jet’s stock rose by 4.13 per cent to Rs 245.80 on the BSE. At the NSE, it gained 3.93 per cent to Rs 245.50.

In a major relief for Jet Airways and Etihad, Sebi yesterday said the Abu Dhabi carrier does not have to make an open offer for Jet shareholders.

Clearing the regulatory hurdles for the high profile deal, the Securities and Exchange Board of India (Sebi) also ruled that Etihad “has not acquired control over Jet”.Etihad purchased 24 per cent stake in Jet Airways in a deal worth about Rs 2,060 crore deal which was announced in April 2013.

“…the fact that existing promoters hold 51 per cent shares and voting rights in Jet strengthen the stand of Sebi as communicated to Ministry of Finance vide letter dated September 25, 2013 that Etihad cannot be termed as a person acting in concert along with the existing promoters of Jet under… Takeover Regulations, 2011,” the regulator had said in its order.