Jet stock trading 13 percent higher after Etihad deal

Last Updated: Thu, Apr 25, 2013 05:43 hrs

Shares in Jet Airways were trading up nearly 13 percent after gaining as much as nearly 20 percent on Wednesday after Gulf carrier Etihad Airways said it is taking almost a quarter stake in Jet Airways at 754.74 rupees per share, a 31.7 percent 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.

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

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