UB wraps up Rs 400 cr debt for Deccan deal

Bangalore: UB Holdings, which is in the process of acquiring 46 per cent stake in Deccan Aviation, has wrapped up raising the Rs 400 crore debt to part-finance this acquisition.
UB Holdings, which controls Kingfisher Airlines, will be paying out close to Rs 975 crore for the acquisition.
The entire Rs 400 crore debt has been raised locally and will enable UB Holdings to close the first tranche of payment to Deccan Aviation?s promoters and major shareholders.
According to the deal announced at the end of May 2007, UB Holdings is acquiring 26 per cent, being made on a preferential basis of fresh equity shares, from Deccan Aviation for Rs 550 crore.
Subsequently, UB Holdings will make an open offer for an additional 20 per cent, estimated to cost around Rs 425 crore. The open offer window is between July 25-August 13, 2007 and will be made at Rs 155 an equity share.
26/06/07 Raghuvir Badrinath/Business Standard

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Categories: Air Deccan Jun 2007, Kingfisher Jun 2007