The equity investment involved an increase in the issued share capital in Jet Airways and the issue and allotment of 27,263,372 shares on a preferential basis to Etihad. The equity shares issued to Etihad had a face value of 10 Rupees each but were issued at Rs 754.736 each, valuing the equity investment at approximately US$379 million.
The deal also involved Tail Winds Limited selling its entire 79.9% shareholding in Jet Airways with most of the shareholding being sold at the prevailing market price to its shareholder, Mr. Naresh Goyal and 5% of its stake being sold to the public in order to enable Jet to meet the requirements of the Securities and Exchange Board of India (SEBI) regarding public ownership of its shares as the SEBI rules required Jet to have 25% of its shares in public ownership by 4th June 2013.
David Spencer, Non – Executive Director of IQE Limited and Director of Simcocks Advocates Limited helped provide knowledge and support from his vast company secretarial experience with Tail Winds throughout the process, with IQE acting as Registered Agent of Tail Winds for all statutory related matters.
Simcocks Advocates, a leading Isle of Man law firm, provided the Isle of Man legal advice and opinions throughout negotiations.
David, Company Secretary of Tail Winds, travelled to Etihad's prestigious offices in Abu Dhabi to work in conjunction with Etihad's UK legal advisors DLA at a conference board meeting with Directors and advisors present in Mumbai including Indian officials who were present to witness the signing of the investment agreement and other principal initial agreements relating to the transaction.
David said " the investment agreement with Etihad has provided Jet with a valuable injection of capital and provides a commercial synergy which is of great benefit to both airlines "
The transaction is a ground-breaking development as the first investment by a foreign airline into the Indian aviation sector since the Indian government eased its restrictions on foreign ownership of national companies last year in an effort to boost the economy.
Based in Mumbai, Jet Airways is the second largest Indian airline, operating over 400 flights daily to 76 destinations worldwide and is listed on the National Stock Exchange of India (NSE) and Bombay Stock Exchange.
With offices in the Isle of Man and Mauritius, IQE are well placed to assist clients with investment in the Indian markets. For more information, please contact Steve McCafferty, Associate Director on +44 (0) 7624 490561 or email email@example.com
We have the expertise to assist with multi-jurisdictional fiduciary services for international structures
Simcocks Advocates have worked closely with IQE on both real estate and other private and commercial transactions over a number of years, and from our experience, IQE always strive to deliver the highest standards of service to both private and corporate clients alike. Their attention to detail, strong work ethic and listed corporate governance experience set them apart from other service providers. Phil Games, CEO, Simcocks Advocates Limited