Promoter exits Jet Airways board as lenders take control

The promoter of the cash-strapped Jet Airways stepped down as chairman of the board on March 25, 2019. With this move, the stake of the promoter has been reduced to 25 per cent from the earlier majority share of 51 per cent while that of Abu Dhabi-based Etihad Airways’ has come down to 12 per cent from 24 per cent. Moreover, the consortium of lenders led by SBI has acquired a 51 per cent stake in the airline through the issue of 114 million fresh shares for Re 1 per share, thereby taking control of the airline until a new investor is roped in. With the allocation of shares, the lenders will infuse capital funding of Rs 15 billion via debt instruments. Also, as per plans, expressions of interest from buyers willing to take over the beleaguered airline are likely to be finalised by end May 2019. To keep the airline running, the new investor will have to bring in about Rs 45 billion as capital funding.

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