No need to make an open offer, SEBI tells Etihad

Mumbai, May 8 (IANS) The Indian stock market regulator Thursday said Etihad Airways need not make an open offer to public share holders of Jet Airways.

The Securities and Exchange Board of India (SEBI) said that Etihad's acquisition of 24 percent stake in the Mumbai-based Jet Airways did not result in change in management.

SEBI in February had issued a notice to Etihad, asking it to explain why it should not make an open offer to Jet Airways' public shareholders.

Under the Indian laws, an open offer is required to be made by the company which acquires at least a 25 percent stake in a listed company, or if there is a significant change in management control after the stake sale.

In an order passed Thursday on "The matter of acquisition of shares of Jet Airways by Etihad", SEBI said it did not find any need for issuing any directions.

On the question of effective control over the Indian passenger carrier, SEBI granted opportunity of personal hearing to all the stakeholders in April.

The order assumes significance as it clears the way for appointment of Etihad's key personnel in Jet Airways.

Last year the Abu Dhabi-based airlines became the first foreign passenger carrier to invest in the Indian domestic airways. It bought a 24 percent stake in Jet Airways for Rs.2,069 crore ($380 million).