More news coming out on Jet.......
1. Banks to convert some debt to equity which will bring down the existing stakes of both Etihad (24%) and Naresh Goyal (51%).
2. Post debt to equity conversion, Jet and Etihad to reinvest to increase their now reduced stakes. Etihad to invest so it continues to maintain its 24% stake thereby not triggering a requirement for an open offer for an additional 26%. It is unclear how much Jet would invest and how much equity it would hold. My guess is Naresh Goyal would opt to get to 25%, which will allow him to block special resolutions thereby allowing him to retain some level of power. He had promised that he would invest Rs 700 crore if he is allowed to keep 25% and pledge all his shares to the bank.
3. If #1 and #2 happen, Naresh Goyal is a true jadugar/magician having outwitted everyone yet again. Truly a wily old person!
“Naresh Goyal’s stake in Jet Airways could fall to 25% or lower, from existing 51%, after lenders convert debt into equity," said a person with direct knowledge of the matter, requesting anonymity. “Etihad, which is waiting to infuse capital into the Indian airline, provided their conditions are met, could restart talks about fund infusion once the debt to equity conversion is completed."
“As it is, Tata Sons is still interested to invest in Jet Airways, provided Naresh Goyal cedes control in the airline. However, Etihad is in a position to invest in Jet Airways without triggering an open offer as the lenders debt to equity conversion will also bring down Etihad’s stake in the airline," the person said, adding that Etihad might infuse capital and refinance debt without triggering an open offer by not exceeding the shareholding of 25%.https://www.livemint.com/companies/news ... 08096.html