April 24, 2013 9:37 PM

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Jet airways to sell 24 % stakes to Abu Dhabi based Etihad airlines

In the first ever investment by a foreign airline in an Indian carrier, Jet Airways on Wednesday announced plans to sell 24 per cent equity to Abu Dhabi based Etihad Airways for about Rs. 2,058 crore. This will be part of a strategic alliance that would lead to a major expansion in their global network.Jet promoter Naresh Goyal and Etihad President and CEO James Hogan, announced that Jet Airways will sell 27.26 million shares in a preferential offer to Etihad at 754.74 rupees , a piece.A joint statement by the two airlines said substantial ownership and effective control will remain with Indian nationals, with Goyal as non-executive Chairman holding 51 per cent of the company.This is the first investment by a foreign carrier in an Indian airline since the government changed the FDI policy in aviation last September to allow foreign carriers to pick up stake in their Indian counterparts.

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