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Etihad proposes hike in stake to bail out Jet Airways (Lead)
New Delhi, Jan 21 (IANS) In a fresh twist to the ongoing Jet Airways bailout saga, lenders are now mulling over a fresh proposal.
With no resolution forthcoming last week and a deadlock persisting, Abu Dhabi-owned Etihad has submitted an alternate proposal for a stake hike in Jet Airways.
With the SEBI formula for preferential allotment seen as unrealistic and unworkable, Etihad has proposed a rights issue worth US $500 million. Through this mechanism Eithad proposes to hike its stake to 49 per cent in Jet Airways.
Etihad currently holds 24 per cent in Jet Airways and the rights issue by Etihad is expected to be at around Rs 160 per share. It is likely to infuse Rs 2,170 crore by subscribing to the rights issue. Other investors, lenders may also subscribe to the rights issue.
Jet Airways too reckons that the rights issue is the right instrumentality to negate the need of open offer by Eithad, something that the UAE airline was not willing to do.
Equally, Etihad was planning the rights issue to negate the need Of cash outflow to market. Indian lenders are also expected to convert part debt to equity at Rs 1 per share.
The conversion price was determined by an RBI circular of February 12, 2018 and Naresh Goyal was offered the position of Chairman Emeritus with no special rights.
The carrier recently cancelled an order for 10 A320 Neo aircraft and let go several pilots to restructure its operations after a $3.5-billion loss during the last two years.
Etihad management has structured the new proposal because it does not want a repetition of the Air Berlin case. Etihad had taken 29.2 per cent in Air Berlin just as it has 24 per cent in Jet Airways but the situation was so precarious in the German operation that the airline went belly up.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.