Now, Paramount eyes SpiceJet

Mumbai: The Chennai-based all business class airline Paramount Airways, promoted by the diminutive M Thiagarajan has started to bare its fangs. A few days after it was reported that Paramount is in talks to acquire a controlling stake in Jeh Wadia’s Go Air, sources say Thiagarajan has now set his sight on Delhi-based low cost carrier SpiceJet.
This, sources said, is because the Wadia family is undecided on whether or not they ought to let go of control over Go Air. The Wadia-promoted airline’s official line is that they have no intentions to exit.
Sources at Paramount said that the airline has reached an informal agreement with some of Spice Jet’s shareholders who are keen to exit the airline. Once, Paramount acquires 26% in Spice Jet, it will make an open offer for another 20%. Sources said this investment may need at least Rs 500 crore. This values the Delhi-based Spice Jet in the region of Rs 1,000 crore.
Spice Jet is listed on the domestic stock markets with the Kansagara family, promoters of the airline, holding around 12%. Dubai-based private equity fund Istithmar also has a considerable stake in the airline, while the Tata group holds nearly 10%.
19/06/07 Mansi Kapur & Rajesh Chandramouli/Times of India

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Categories: Paramount Airways Jun 2007, SpiceJet Jun 2007