Thursday, May 18, 2006

Paramount to offload stake to global funds

Mumbai: After divesting a total of 12 per cent stake in favour of private equity players like India Growth Fund (IGF) and Bennet, Coleman & Company, the Chennai-based Paramount Airways is likely to dilute another 10 per cent of its equity to global private equity funds.
According to industry sources, Paramount Airways, is valued at $500 million.
Five overseas private equity funds are in talks with Paramount Airways, which operates exclusive business class seats till now, for picking up about 10 per cent stake. Sources close to the development said that two domestic private equity funds are also in the fray to pick up stake in the airline. However, Paramount executives were not available for the comment.
Earlier, Kotak Mahindra Bank's private equity fund India Growth Fund (IGF) had picked up 10 per cent stake in this airline for $15 million.
18/05/06 P R Sanjai/Business Standard
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