New Delhi: Following concerns raised by Securities Exchange Board of India (SEBI), the government on Monday gave a conditional go ahead to Jet Airways to sell 24 per cent stake to Abu Dhabi based Etihad Airways for Rs. 2,058 after Etihad submitted an amended Holders Agreement (SHA) and Commercial Cooperation Agreement (CCA).
"We have approved the Jet-Etihad deal with some conditions," Economic Affairs Secretary Arvind Mayaram told reporters after a meeting of the Foreign Investment Promotion Board (FIPB) here. As part of the conditional clearance, Jet Airways has been asked to seek prior approval of government for any changes to be made in the SHA with Etihad as also for any change in shareholding pattern of the company.
The FIPB clearance also came with a rider that all shareholder disputes and disputes under SHA would have to be adjudicated under Indian law as opposed to English law as proposed in the revised SHA submitted just before the FIPB meeting. Any other arbitration can happen under English law. In addition to this, Jet-Etihad will have to submit new Articles of Association before the deal is put before Finance Minister P. Chidambaram for approval and then brought before the Cabinet Committee on Economic Affairs (CCEA).
Read news in full 29/07/13 Sujay Mehdudia/The Hindu
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