UB in talks to bankroll Air Deccan acquisition

New Delhi: Vijay Mallya-promoted UB Group, which has acquired 26% in Air Deccan for Rs 550 crore and is to buy another 20% through open offer, has initiated talks with financial institutions to fund the takeover.
UB Holdings has only four weeks to tie up funds and the process of talks with financial institutions has begun, UB Group chief financial officer Ravi Nedungadi told PTI over the phone. “In another three weeks’ time, we should be able to finalise (the process),” he said, however, declining to name the financial institutions the group was currently talking to.
Last week, Mallya’s UB Group paid an advance of Rs 150 crore toward the 26% stake--which would be through an issue of 96,77,419 fully paid-up equity shares. The remaining amount would be paid to Air Deccan’s promoter, Deccan Aviation Ltd, in the coming four weeks. The transaction had valued Air Deccan at Rs 155 a share.
Asked about market reports on the Anil Dhirubhai Ambani Group’s interest in picking up a stake in Kingfisher Airlines, he said there was no such development.
04/05/07 PTI/Financial Express

To Read the News in full at Source, Click the Headline

Categories: Air Deccan Jun 2007, Kingfisher Jun 2007