Jet Air seeks shareholders nod for debenture sale to Etihad
24 Jan 2015
Jet Airways has sought the approval of its shareholders to raise up to $300 million (about Rs1,843 crore) through issue of securities to its partner, Abu Dhabi-based Etihad Airways on a private placement basis. Etihad holds a 24-per cent stake in Jet.
Jet Airways today issued a postal ballot to its shareholders seeking their approval for the proposal "to offer, issue and allot secured and / or unsecured, listed and / or unlisted non-convertible debentures and / or subordinated debt instruments and / or other debt securities or bonds for an aggregate value of up to $300 million on a private placement basis to Etihad Airways".
During the quarter ended September 2014, Jet Airways had reported 96 per cent reduction in net losses on a one-time income by way of sale of JPmiles to Etihad.
The Rs305 crore income from sale of its loyalty programme to equity partner Etihad helped Jet slash losses by 95.7 per cent to Rs43 crore.
It had reported a whopping Rs999 crore net loss in the same period a year ago.