Jet Airways has responded to the clarifications sought by the Competition Commission of India (CCI) on its Rs 2,058 crore stake sale to Abu Dhabi-based carrier Etihad. The regulator will look into the clarification and give its reply in 30 days, said CCI sources.
CCI had sought clarity in the deal to ensure that overall competition in the aviation market is not affected and that the interests of public shareholders and consumers are protected.
Larger control
It had raised concern about the transaction, which indicated a larger control of Etihad in the Naresh Goyal-led Indian carrier despite the purchase of only a 24 per cent stake.
Earlier, the Securities and Exchange Board of India (SEBI) had also sought clarifications on the deal. As per SEBI regulations, any share sale of 25 per cent or higher makes it mandatory for the acquirer to make an open offer for the purchase of a further 26 per cent stake from public shareholders.
Jet and Etihad have maintained that substantial ownership and effective control will remain with Indian nationals, with Goyal as non-executive Chairman holding a 51 per cent stake.
The Jet-Eithad deal is the largest foreign investment proposal in the aviation sector after the government allowed foreign carriers to pick up stakes in domestic airlines in September last year.