Motilal Oswal
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Motilal Oswal
Aviation

Why Etihad is adamant about capping promoter stake in Jet Airways

Updated : March 19, 2019 07:58 AM IST

Jet Airways is looking to Etihad for more funding but is in a position of weakness, with almost 50 percent of its fleet grounded, a daily cash burn of Rs 7–10 crore and continued operational cancellations.
Etihad is insisting on a non-compete clause for the promoter in addition to capping Naresh Goyal’s stake at 22 percent in perpetuity.
In the event of a stake sale, Etihad will require a respectable and justifiable value for the stake in Jet Airways that can only come with drastic management changes.
Why Etihad is adamant about capping promoter stake in Jet Airways
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