Chase for funds over, Mallya’ll now choose

Bangalore: Vijay Mallya’s United Breweries Group, which is in the market to raise Rs 400 crore to fund its acquisition of 26% stake in Deccan Aviation Ltd, has received “binding term sheets” from three financial institutions (FIs) (Indian and overseas), including Deutsche Bank.
“The funds are more or less tied up. We have binding term sheets from three financial institutions. We now have to choose among them. Since we have enough time, we will evaluate all of them thoroughly before settling for one,” said UB Group chief financial officer Ravi Nedungadi.
Last week, UB Group announced the acquisition of 26% stake in Capt G R Gopinath-promoted budget carrier Air Deccan for Rs 550 crore, of which it has already paid Rs 150 crore and Rs 400 crore was to be paid in four weeks.
“We have to pay the sum by June 26-27, so there is enough time,” said Nedungadi.
Mallya, who also operates full-service carrier Kingfisher Airlines, will be buying another 20% stake in the largest budget carrier through an open offer.
07/06/07 Praveena Sharma/Daily News & Analysis

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Categories: Air Deccan Jun 2007, Kingfisher Jun 2007