Shares in India's Jet jump on Etihad deal clearance
MUMBAI (AFP) - Shares in India's Jet Airways jumped on Friday after the government cleared the group to sell a 24-percent stake to Abu Dhabi-based Etihad in the first such foreign deal since reforms last year.
Jet announced the plan to sell its shares to Etihad in April, taking advantage of a government move to open the aviation sector a year ago to allow international carriers to buy up to a 49 percent stake in domestic operators.
Jet shares rose as much as 7.27 percent in morning trade, and was later up 2.55 percent at 396.45 rupees on the Bombay Stock Exchange.
The deal is worth US$335 million (S$417.5 million), but its completion could be further delayed after the Supreme Court agreed to hear a public interest litigation against the acquisition, the Press Trust of India reported on Friday.