Driving a hard bargain in exchange for a lifeline for the cash strapped Jet AirwaysNSE -8.17 %, Etihad Airways CEO Tony Douglas has set a slew of tough pre-conditions which include complete exit of Naresh Goyal and his family from the management of the Indian carrier.
Etihad has sought exemptions from Sebi from making a open offer and preferential pricing guidelines stating that the fair price for Jet Airways shares is in the region of Rs 140 to 150, a share, far lower than the current market price.
“Without this approval we are not willing to invest a single penny further,” Douglas stated bluntly in a letter addressed to Rajnish Kumar, chairman of the State Bank of India. ET has reviewed the letter, dated 15th January. A copy of the letter was also marked to Naresh Goyal and aviation secretary R N Choubey.
Douglas has sought the help of SBINSE 0.50 % to get the approval from the civil aviation secretary and indicated that they are in talks with Sebi for those exemptions, they have sought to make a equity infusion.
In addition, Etihad is also demanding that Mr Goyal’s future role as “Chairman Emeritus” should be “well defined,” stressing that no board seat should be given for Mr. Goyal himself and no rights for him or his family and affiliates to act or represent the airline.