7:3 swap for Kingfisher-Deccan merger

Mumbai: The Kingfisher Airlines-Deccan Aviation merger swap ratio has been fixed at 7:3. This means shareholders in the UB group-promoted Kingfisher Airlines will receive three shares of Deccan for every seven shares that they hold.
Deccan Aviation’s name will be changed to Kingfisher Airlines and the merger will be effective from April 1, 2008, subject to statutory approvals.
The merger of Kingfisher Airlines with Deccan Aviation moved a step closer to its conclusion today with the Deccan Aviation board approving the merger and the share swap ratio after a board meeting in Bangalore.
According to the management of Deccan, the share entitlement ratio was determined on the basis of independent valuations by KPMG and Dalal and Shah.
The Deccan-Kingfisher combine commands a market share of just over 29.3 per cent (source: DGCA) and accounts for 50 per cent of deployed capacity in the south.
For the quarter ended December 31, 2007, Deccan posted a net loss of Rs 190.86 crore on revenues of Rs 567.63 crore.
Kingfisher had posted a loss of Rs 575.8 crore in FY07, on a turnover of Rs 1,553 crore and it is believed that the airline has accumulated losses of about Rs 1,200 crore, which amounts to a negative net worth of Rs 385 crore.
01/02/08 Business Standard

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Categories: Deccan Feb 2008, Kingfisher Feb 2008