Aviation

Jet deal may skid on valuation runway


MUMBAI, DELHI
Etihad Airways, which had earlier agreed to buy a 24 per cent stake in Jet Airways, has sought a reduction in the premium it was willing to pay on the shares of the Indian carrier. This is seen as a condition put by the Abu Dhabi-based airline for extending the agreement-closure deadline, which ends on July 31.

A top source associated with the deal said: “The agreement has a clause that deal can be terminated if requisite permissions are not received before July 31. However, the discussions are now on to renegotiate the terms of the deal at a price lower than that agreed upon earlier.” The two airlines are now discussing changes in the investor agreement. These include a possible revision in purchase price.

Full report here Business Standard

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