Tuesday, October 19, 2010

Maran launches SpiceJet open offer

Delhi-based low-cost carrier SpiceJet’s new promoters SunTV chief Kalanithi Maran and his business KAL Airways has launched an open supply to acquire an additional 20% stake from the low-cost carrier on October 18. The supply will open on October 18 and close on November 6, said a filing over a Bombay Stock Exchange dated October 13.

In June, the Chennai-based industrialist had clinched a deal to acquire a 37.7% stake from the low-cost carrier for Rs 739.57 crore from American investor Wilbur Ross, his investment organizations as well as the Kansagara family-promoted Royal Holding Services.

Recently, Maran elevated his stake from the budget airline to 25.12% by obtaining 7.42% much more stake via off-market transactions. Shareholders are going to be accessible Rs 57.76 for every share they retain in SpiceJet, translating into a 3% premium more than the closing cost of Rs 56.05 on June 11, 2010. This would involve an outgo of close to Rs 480 crore, taking the overall deal size to Rs 1,220 crore as Maran and his company KAL Airways had clinched the deal to pick up a 37.73% stake in SpiceJet at Rs 47.25 apiece.
Source: Financial Express

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