Foreign Investment Promotion Board (FIPB) today cleared Abu Dhabi-based Etihad Airlines buying 26 per cent stake in Jet Airways for Rs 2,058 crore with some conditions.
FIPB cleared the deal with some riders, sources attending the FIPB meeting said.u00a0
The conditions include Jet seeking prior Government of India approval for any changes in the Share Holders Agreement (SHA) with Etihad. Also, any arbitration would have to be under Indian law and not English law as proposed in the revised SHA submitted by Jet-Etihad to FIPB.
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Once Jet-Etihad agree to the conditions, the deal would go to the Cabinet Committee on Economic Affairs (CCEA) for approval.
Ethiad has already agreed to reduce the number of directors it will have on the board of domestic carrier to two from three previously proposed, leaving 'effective control' with the Indian promoters.u00a0
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