Jet Airways shares surges upon likely approval of Etihad deal

By IVCPOST Staff Reporter

Jul 26, 2013 11:43 PM EDT

Jet Airways shares rose to 19.4% on Friday after traders predicted the possibility of the planned stake sale agreement with Etihad Airways PJSC getting a nod from the Foreign Investment Promotion Board (FIPB).

Etihad Airways and Jet Airways representatives were not immediately reachable for a statement on the said approval.

Jet Airways is the second largest airline in terms of market share and passenger number in India and is based in Mumbai, Maharashtra. Etihad Airways is the Abu Dhabi-based flag carrier of the United Arab Emirates and was established in July 2013 by Royal decree.

FIPB, which evaluates and approves direct investment (FDI) proposals, is set to consider the Jet-Etihad deal at its meeting on Monday. Traders stated the deal would most likely be approved.

Last month, the FIPB was unable to come to a final decision on Jet's proposal to sell a 24% stake to Etihad.

Jet shares ended up 17.43% at 359.50. The benchmark company Sensex closed 0.29% lower with 19, 748.19 points.. 

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