Etihad offers to pick up Jet Airways' shares at 49pc discount

_A Monitor Report 01 Feb, 2019 | 166 Views | - +
Abu Dhabi : Etihad Airways has offered to pick up shares of debt-laden Indian carrier Jet Airways Ltd at a 49 per cent discount and to immediately release US$35m after certain conditions are met, CNBC-TV18 reported.

Shares of Jet Airways, in which Etihad already owns a 24 per cent stake, tumbled as much as 7.5 per cent to 271.75 rupees (US$3.83) in their biggest intraday drop since early December.

The Abu Dhabi carrier has offered 150 rupees for each Jet share, CNBC-TV18 said, citing a letter from Etihad's CEO.

Tony Douglas has written to the State Bank of India (SBI), Jet's biggest lender, on the restructuring plan for the Indian airline, the report added.

The 25-year-old Indian airline has been roiled by financial difficulties, racking up a pile of dues to pilots, lessors and vendors, at a time when intense pricing competition, a weak rupee and rising fuel costs are weighing on the broader airline sector in the country.

Jet will not be able to continue funding operations beyond the next week and Etihad is willing to inject US$35m if some conditions are met, the CNBC-TV18 report cited Douglas as saying in his letter.

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