Indian airline Jet Airways on Wednesday announced plans to sell a 24 percent stake to UAE's Etihad Airways for about Rs 2,058 crore.
The deal, as part of a strategic alliance that would lead to a major expansion in Jet´s global network, is the first ever investment by a foreign airline in an Indian carrier.
Under the deal, that fell through after almost six months of tough negotiations, the Indian private carrier would sell 27.26 million shares in a preferential offer to Etihad at Rs 754.74 a piece.
"The value of this equity investment is $379 million (about Rs 2,058 crore) and will result in Etihad Airways holding 24 percent of the enlarged share capital of Jet Airways," a joint statement by the two airlines said.
"Substantial ownership and effective control will remain with Indian nationals, with [Jet promoter Naresh] Goyal as non-executive Chairman holding 51 percent of the company,"" the statement said.
The two airlines said that the alliance would result in their combined global network to cover over 140 destinations and provide direct foreign connectivity to Indian passengers from 23 metro and non-metro cities.