Friday, January 12, 2007

SpiceJet offloads 25% to Tata, others for USD 71 mn

Low-cost carrier, SpiceJet on Thursday approved a 25% fresh issue of shares worth USD 71.34 million to raise funds for fleet expansion, reports Financial Express.
Under the terms of the deal, which values the company at USD 285.36 million, the Tata Group will be allotted shares worth USD 16.8 million, Ishtitmar will receive shares worth USD 25 million, BNP Paribas will get shares worth USD 15 million, Telemnix will receive shares worth USD 7 million, Goldman Sachs will be allotted shares worth USD 5 million and UK`s KBC Fund will get shares worth USD 2.5 million.
Earlier in December, the company announced its plans to sell USD 80 million worth of shares on a preferential basis. The company had, however, received offers amounting to USD 118 million. Global private investment firm, Texas Pacific group wanted to invest USD 30 million but withdrew the offer.
SpiceJet, which currently has a market share of around 7.5%, will acquire its 11th aircraft in February and plans to expand its fleet to 18 planes by December.
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