Merger gives Mallya 68% in new entity

New Delhi: Shareholders of Kingfisher Airlines Ltd, which is privately held by Vijay Mallya’s United Breweries Group, will receive three shares of Deccan Aviation Ltd for every seven Kingfisher shares they now hold, in a move that completes the merger of the two carriers and according to latest public filings hands over at least two-thirds control in the merged entity to the liquor baron.
The merger process is expected to be completed by 1 April, subject to regulatory approvals. As a result, Mallya, who already owns 49.77% of Deccan Aviation through his UB Group’s Kingfisher Radio Ltd and UB Overseas Ltd, will effectively control more than 68% of the company, which with the addition of Kingfisher’s fleet will have 78 aircraft, making it India’s largest private airline by fleet size. Executives of Kingfisher Airlines and Deccan did not answer phone calls for comment.
The UB Group owned 201.56 million shares in Kingfisher Airlines, a wholly-owned unit, according to United Breweries’s annual report for fiscal 2007. Deccan’s outstanding shares count to nearly 135.8 million.
31/01/08 Mehul Srivastava/Livemint

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Categories: Deccan Feb 2008, Kingfisher Feb 2008