Gopinath keen to stay at Deccan helm after sale

New Delhi: The share price of Air Deccan rose by 22% to Rs 145.40 on Thursday on the BSE in the backdrop of speculation that the much-talked about Air Deccan “fund infusion” was imminent. Aviation circles were abuzz with talk of R-ADAG being close to picking up a substantial stake in the carrier.
Air Deccan is in the process of raising up to $100 million by bringing in a strategic investor to fund its expansion plans. Sources say that while Reliance ADAG has emerged as Air Deccan’s first choice as strategic investor, the final deal hinges on negotiations over a clause inserted by promoter GR Gopinath which says that he would continue to run the show even after becoming a minority shareholder.
The promoter group — which includes Gopinath, KJ Samuel and Vishnu Rawal — together hold 22.11% in Air Deccan. After fresh infusion of equity, the stake of the promoter group will come down proportionately to around 16%.
Coca-Cola bottler Lachmandas Ladhani with 12-13% stake is another key shareholder in the airline. The R-ADAG-owned Reliance Mutual Fund already has a 4.6% stake in the airline, but this would not form part of R-ADAG’s stake.
18/05/07 Sudipto Dey/Economic Times

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Categories: Air Deccan May 2007