UB's aviation unit to raise over $200m

Bangalore: UB Holdings Ltd's aviation vertical is likely to raise upwards of $200 million sometime mid next year, a company official said. It could be through a follow-on public offer, if Deccan-Kingfisher merger goes through, or convertible bonds or through private placement.
Addressing shareholders on Wednesday, the company chairman Vijay Mallya indicated that the combined valuation of Deccan-Kingfisher could be around $1.25 billion currently. This comes in the wake of mounting speculation that UB may be preparing ground a reverse merger between Deccan and Kingfisher.
The scrip of Air Deccan which has been soaring on hopes of a reverse merger with Kingfisher Airlines closed at Rs 243.80 on BSE on Thursday giving the counter a market capitalisation of $850 million. Also, Accenture, which is working on synergy possibilities between the two airlines, is likely to table its report by December first week.
30/11/07 Economic Times

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Categories: Kingfisher Nov 2007