Kingfisher Radio buys 2.95% more in Deccan Aviation

Bangalore: Kingfisher Radio, subsidiary of UB Holdings, has picked up an additional 2.95% stake in low-cost carrier Deccan Aviation, according to an announcement on NSE.
The stake hike takes the share of UB Holdings in Deccan Aviation close to 50%. Confirming the market development, UB Group CFO Ravi Nedungadi told ET, “We did buy additional stake, but our holding in Deccan is still under 50%.”
While the Sensex closed 338.4 points up at 20,192.52, the Deccan scrip touched an intra-day high of Rs 280.5 before closing at Rs 267.25, or 2.84%, higher than Tuesday’s closing price. The traded volume was 3.1 million shares compared with the two-week volume of 1.84 million shares.
Currently, UB Holdings has a 45.97% stake in the company which came through after the open offer was lapped up by investors. This is the first time the UB Group has hiked its stake after the reverse merger between Kingfisher Airlines and Deccan Aviation. The reverse merger was based on the recommendation of consulting firm Accenture. The merger formalities are expected to be completed by this fiscal end.
The merged entity will be called Kingfisher Airlines and will be a subsidiary of Vijay Mallya’s UB Holdings.
27/12/07 Economic Times

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Categories: Kingfisher Dec 2007, Simplifly Deccan Dec 2007