Jet Airways has dipped nearly 6% to Rs 438 in opening deals on reports that Prime Minister’s Office (PMO) has asked the cabinet secretary to submit a report on the security concerns related to Abu Dhabi-based Etihad Airways PJSC.
To resolve this issue, cabinet secretary Ajit Seth has called a meeting today to discuss the transaction following security-related objections raised by the prime minister's office, the reports suggest.
Abu Dhabi's national carrier Etihad Airways had, on April 24, announced that it would purchase a 24% stake in Jet for Rs 2,058 crore, a premium of more than 20% over the prevailing market price of Jet shares.
But on June 13, the foreign investment promotion board (FIPB) deferred a decision on approving the deal saying it needed more clarity on the ownership structure of Jet Airways as well the control that Etihad would exercise over the Indian carrier following the deal. Jet chairman Naresh Goyal owns a 51% stake in the airline.
The stock opened at Rs 443 and hit a high of Rs 455 on BSE. A combined around one million shares have changed hands on the counter on BSE and NSE.
To resolve this issue, cabinet secretary Ajit Seth has called a meeting today to discuss the transaction following security-related objections raised by the prime minister's office, the reports suggest.
Abu Dhabi's national carrier Etihad Airways had, on April 24, announced that it would purchase a 24% stake in Jet for Rs 2,058 crore, a premium of more than 20% over the prevailing market price of Jet shares.
But on June 13, the foreign investment promotion board (FIPB) deferred a decision on approving the deal saying it needed more clarity on the ownership structure of Jet Airways as well the control that Etihad would exercise over the Indian carrier following the deal. Jet chairman Naresh Goyal owns a 51% stake in the airline.
The stock opened at Rs 443 and hit a high of Rs 455 on BSE. A combined around one million shares have changed hands on the counter on BSE and NSE.
