Naresh Goyal buys 29% stake in Jet Airways from promoter entity

Jet Airways promoter Naresh Goyal on Thursday bought over 29 per cent stake in the private carrier from another promoter entity for about Rs 1,434 crore. The shares were purchased from Tail Winds Ltd, a company incorporated in the Isle of Man and wholly owned by Goyal.

The scrips were bought on an average price of Rs 570 valuing the transaction to Rs 1,433.46 crore.

According to Mail Today, Tail Winds is an Overseas Corporate Body (OCB) that is fully owned by Goyal and in which he has held the majority shareholding. With the purchase of 29 per cent in the first tranche of a multiple transaction, the non-resident Indian now becomes 29 per cent owner of Jet, which will ultimately enlarge to all 79.9 per cent.

According to information available with the stock exchanges, Goyal purchased 2.51 crore shares, amounting to 29.13 per cent stake, of Jet Airways in his personal capacity.

At the end of March quarter, Tail Winds held 79.99 per cent stake in Jet while Goyal owned 9,995 shares, amounting to 0.01 per cent holding, in the company in his personal capacity.

Etihad Airways will now purchase 24 per cent from Goyal and not Tail Winds effectively facilitating this transaction. Forging a strategic alliance, Jet has decided to sell 24- per cent stake to Etihad for about Rs 2,058 crore.

Jet would sell 27.26 million shares in a preferential offer to Etihad at Rs 754.74 a piece. At the same time, Goyal's direct holding in the company would rise to 56 per cent through transfer of shares from Tail Winds. The company's Extra Ordinary General Meeting is scheduled for today.

A section of the media has reported that the Securities and Exchange Board of India ( Sebi) wants the Jet management to convince it that Etihad's rights after acquiring 24 per cent do not amount to joint control. Sebi's reservations emanate from joint control of ownership and whether any violation of takeover rules has taken place. Goyal's acquisition of Tail Winds shareholding is part of this same process. To comply with Sebi and Foreign Investment Promotion Board norms, Goyal has initiated this vital exercise. In 2003, OCBs were derecognised as an investor class in India. Hence, Goyal's purchase of the Tailwinds shares.

The company's Extra Ordinary General Meeting (EGM) is scheduled for Friday.

Amid weakness in the broader market, shares of the company on Thursday inched up 0.78 per cent to settle at Rs 584.25 apiece on the BSE.

With PTI inputs