UB raises Rs 550 cr from 3 institutions

Bangalore/Mumbai: Beer to-airline behemoth UB Group has raised Rs 550 crore as debt financing from IDFC, HDFC and IL&FS for its stake buy in Air Deccan, sources said. These institutions could pour in more debt as group company UB Holdings is set to make an open offer for 20% stake more in Deccan Aviation, the parent of low-cost airline, shortly.
On May 31, UB Holdings bought 26% stake in Deccan Aviation for Rs 550 crore and announced plans for mandatory open offer. At the time of acquisition, UB indicated that it could rope in financial investors for de-leveraging the acquisition partially, as it had received several expressions of interest from private equity funds. But with debt financing clinched, UB is not likely to be in a tearing hurry to divest stake for de-leveraging.
Sources told ET that UB has tied up debt financing from IDFCand HDFC for over Rs 400 crore. IL&FS is believed to have pumped in the remaining Rs 150 crore.
19/07/07 Boby Kurian, Anto T Joseph & Arun Iyer/Economic Times

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Categories: Air Deccan Jul 2007, Kingfisher Jul 2007