Indian panel approves Etihad purchase of Jet stake
NEW DELHI (AP) - India's foreign investment regulator conditionally approved on Monday a US$379 million (S$480 million) deal by Abu Dhabi-based Etihad Airways to buy a 24 percent stake in Jet Airways, the first foreign investment in an Indian airline since restrictions were eased on aviation deals last year.
The Foreign Investment Promotion Board ruled that Jet Airways must obtain government approval for any changes in the shareholders' agreement with Etihad. It said any arbitration between the two carriers must be conducted under Indian law, the Press Trust of India news agency said.
The deal still needs to be approved by India's capital markets regulator and the Cabinet.
Etihad has reduced the number of directors it will have on the airline's board to two from three proposed earlier, leaving effective control in the hands of Jet Airways.