Jet Airways promoter Naresh Goyal has agreed to sell his controlling stake in the cash-strapped airline and give up operational control, multiple sources familiar with the matter told CNBC-TV18 on Friday.
Goyal, who owns 51 percent stake, along with partner Etihad Airways will together infuse over Rs 500 crore into Jet Airways, said the above mentioned sources on condition of anonymity.
The "critical funding" will take care of airline's immediate requirement until the lenders complete restructuring, said one of the sources.
In an exchange, Jet Airways, in which Abu Dhabi-based Etihad Airways hold 24 percent stake, said it will convene an extraordinary general meeting on February 21 to seek shareholders’ approval on restructuring.
Following the restructuring, Etihad Airways' stake will rise to about 45 percent while Goyal's stake will drop to about 21 percent, said the sources. SBI-led banks will hold about 30 percent stake in the airline.
Jet Airways, which is partially owned by Etihad Airways of Abu Dhabi, has about $1.1 billion in debt and needs $300 million of immediate cash infusion.
Jet controls more than a sixth of a India’s booming aviation market. Yet high fuel taxes, a weak rupee and price competition have squeezed profitability, leaving Jet with $1.13 billion in net debt as at the end of September and defaulting on payments.
At 10:30AM, shares of Jet Airways were up 12 percent to Rs 265 on the Bombay Stock Exchange.
First Published: IST