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Jet Airways gains nearly 20 per cent after Etihad deal

Reuters
Apr 26, 2013 at 07:43am IST

Mumbai: Shares in Jet Airways surged as much as nearly 20 per cent after Gulf carrier Etihad Airways said it is taking almost a quarter stake in Jet Airways at Rs 754.74, a 31.7 per cent premium to Jet's closing share price on Tuesday.

Etihad will also invest an additional $150 million in Jet's frequent flyer programme and spend $70 million to buy Jet's three pairs of Heathrow slots through the sale and leaseback agreement announced in February.

ALSO SEE Jet-Etihad deal will bring down airfares, say experts

The deal sets a valuation benchmark for further investment in Indian airlines, with budget carrier SpiceJet Ltd frequently the subject of stake sale reports.

Jet Airways gains nearly 20 per cent after Etihad deal

The Jet-Etihad deal sets a valuation benchmark for further investment in Indian airlines.

As of 9:25 am, Jet shares were up 14.3 per cent. Spicejet gained 10.5 per cent, while Kingfisher Airlines Ltd gained 2.2 per cent.

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