Jet-Etihad Rs 2,058-crore stake sale deal gets CCEA nod

The Cabinet Committee on Economic Affairs (CCEA) on Thursday cleared the Rs 2,058-crore stake sale of Jet Airways to Abu Dhabi- based carrier Etihad Airways clearing the way for the first foreign direct investment deal in the aviation sector.

Civil aviation minister Ajit Singh said after the CCEA meeting that the deal took time as it had gone through regulatory agencies. The CCEA's nod comes a year after the two carriers formally announced the deal.

Earlier, the Securities and Exchange Board of India (Sebi) had approved deal. Sebi has also added that after the revised structure, the deal should not trigger a mandatory open offer for purchase of shares from public shareholders, and Etihad would not be considered a promoter entity in Jet.

PTI adds: CCEA gave its nod on the condition that, among other things, Jet and Etihad would adhere to Reserve Bank of India (RBI) policy guidelines and Securities and Exchange Board of India (SEBI) regulations, comply with all Indian laws and take prior Foreign Investment Promotion Board (FIPB) approvals for any further changes in the shareholders agreement, commercial cooperation agreement, articles of association, investment agreement and shareholding patterns, sources said.