The Union Cabinet on Thursday cleared Jet Airways’ proposed sale of 24 per cent equity to Abu Dhabi-based Etihad, days after the `2,058 crore deal got regulatory clearances.
“Yes, it has been cleared,” said Civil Aviation Minister Ajit Singh after a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh.
Replying to questions, he said the deal has “gone through all the regulatory processes” and would be “good for civil aviation and good for the passengers”.
The proposal was of Etihad to subscribe 27,263,372 Jet shares of `10 each, amounting to 24 per cent of post-issue paid-up equity share capital for `2,057.66 crore.
CCEA gave its nod on the conditions that, among other things, Jet and Etihad would adhere to RBI policy guidelines and SEBI regulations, comply with all Indian laws and take prior FIPB approvals for any further changes in the shareholders agreement, commercial cooperation agreement, articles of association, investment agreement and shareholding patterns, the sources said. The deal has already been cleared by SEBI and FIPB .