Buzz of Vijay Mallya eyeing a stake in SpiceJet gets louder

New Delhi: After acquiring a stake in Air Deccan last year, UB Group chairman Vijay Mallya is all set to expand his wings further in the domestic aviation space. According to sources, now Mallya is eyeing a stake in low-cost carrier (LCC) SpiceJet.
Last year when Kingfisher Airlines took a 26% stake in Air Deccan, Mallya had evinced interest in picking up a stake in SpiceJet but things did not move forward. "I am interested in SpiceJet but I am not a predator," he had said then. Kingfisher is now learnt to be eyeing a part of either the 12.9% stake held by SpiceJet's promoter, UK-based NRI Bhupendra Kansagra or the 13.4% stake held by Dubai-based investment firm Istithmar PJSC. Kansagra was under a lock-in period, which barred him from selling any part of his stake in SpiceJet. The lock-in period ended a few months ago.
Kingfisher's executive vice president Hitesh Patel said he would not comment on the issue, but added: "..If as predicted, crude hits $178 to a barrel in September, it will kill some players.... The access to funds of Kingfisher is strong and the backing of UB Group is a strong plus."
SpiceJet's executive chairman Siddhanta Sharma maintained that the airline is not talking to anyone for selling stake. The airline, which on Monday declared a loss of Rs 133 crore, is planning to raise $100 million through debt and equity.
03/07/08 Saurabh Sinha/Times of India

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Categories: Kingfisher Jul 2008, SpiceJet Jul 2008