Monday, June 21, 2021
HomeUncategorizedJet Airways rises over 4pc after Sebi exempts Etihad from open offer

Jet Airways rises over 4pc after Sebi exempts Etihad from open offer

Shares of Jet Airways rose as much as 4.1 per cent after market regulator Sebi said Etihad Airways’ purchase of a 24 per cent stake in Jet Airways (India) Ltd did not amount to a change in ownership and ruled the Abu Dhabi-based carrier does not need to make an open offer for shares in the domestic carrier.

This cleared a legal hurdle for Jet-Etihad deal although the stake sale has been completed. This would pave the way for higher cooperation between the two airlines.

The ruling comes after Sebi had issued a show cause notice to Etihad in February asking the Abu Dhabi airline on why it should not have to make a tender offer to Jet public shareholders as part of India’s takeover code.

Despite the Sebi ruling, JP Morgan maintains an underweight rating on Jet, citing increasing completion. JP Morgan has a target at Rs. 206 on Jet.

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