Jet Airways chairman Naresh Goyal ready to quit restructured board, waits for right valuation from Etihad

New Delhi: Debt-laden Jet Airways founder chairman Naresh Goyal is reportedly willing to step down from the restructured carrier’s board if Etihad Airways, which currently owns 24 per cent in the financially troubled airline, offers the “right price” for raising its stake. Besides talks to keep Jet Airways airborne entered the final phase, says a Times of India report.

Last week, the Abu-Dhabi-based airline’s chief executive officer (CEO) Tony Douglas had conveyed to the lead lender State Bank of India (SBI) that it would not pay a rupee extra than Rs 150 a share for injecting fresh capital, and want exit of Naresh Goyal and his family from any management role in the Indian carrier.

“Goyal is not adamant about not stepping down. He is holding on till the right valuation is arrived at,” the daily quoted a person aware of the matter as saying, signalling that Jet boss is negotiating hard. “At Rs 150 per share, Etihad has valued Jet roughly at USD 250 million, or about Rs 1,800 crore. Lenders got an evaluation of Jet done that was much higher,” the source mentioned.

According to the ToI report, Etihad’s offer price of Rs 150 share apiece is not in line with capital markets regulator Securities and Exchange Board of India (Sebi) takeover regulations.

To meet the takeover norms laid down by Sebi, the open offer price has to be the highest of the prices determined under four different parameters: the negotiated price between the buyer and the selling promoter, the average price of stocks in the last 52 weeks before the announcement of takeover, the highest price that the buyer paid in the last 26 weeks before the takeover announcement, and average of 60 trading days before the announcement of the takeover. For the past 52 weeks, Jet stock price has seen a low of Rs 163 and a high of Rs 830.

Worth mentioning here is that Naresh Goyal last week offered to infuse Rs 700 crore into the ailing company under the condition that his stake should not fall below 25 per cent.



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