UB Acquires 20% More in Deccan Aviation, Raises Stake to 46%

Billionaire Vijay Mallya's UB Group acquired another 20 percent in Deccan Aviation Ltd., raising its stake in India's biggest budget airline to 46 percent, the arranger to the offer told the Bombay Stock Exchange.
Bangalore-based UB Group, which acquired 26 percent in Deccan Aviation in May, last month offered to acquire another 20 percent in the budget airline. UB acquired 12.8 percent and 7.2 percent through group companies Kingfisher Radio Ltd. and UB Overseas respectively, Edelweiss Capital Ltd. said.
UB Group acquired the shares at the earlier-agreed price of 155 rupees ($3.9) a share. Deccan Aviation shares gained 3.7 percent today to 153.5 rupees on the Mumbai exchange.
Control of Deccan Aviation will help Mallya's Kingfisher Airline Ltd., also based in Bangalore, reduce operational and maintenance costs. Both the airlines use aircraft made by Airbus SAS and Avions de Transport Regional.
26/10/07 Sumit Sharma/Bloomberg

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

Categories: Air Deccan Oct 2007, Kingfisher Oct 2007