WL Ross to buy fresh SpiceJet equity

Bangalore: Budget airline SpiceJet seems to have made some headway in its talks with the American turnaround investor Wilbur L Ross for infusion of capital in the form of equity.
A source close to the development said the budget airline is considering issuing fresh equity in the name of the billionaire’s company —- WL Ross & Co.
The source said that the airline board will meet on Wednesday to clear the proposal.
“They (SpiceJet) are looking at issuing preferential shares to Ross & Co. The board will be meeting on Wednesday (to clear the proposal),” said the source.
The price of the preferential share will be worked out on the basis of the Securities and Exchange Board of India (Sebi) formula —- 26 weeks average share price or the average share price over the last 14 days, whichever is higher, the source said.
SpiceJet executive chairman Siddhanta Sharma did not confirm the deal beyond stating that talks were on with Ross. “We have appointed N M Rothschild & Sons (India) to advise us on raising the funds from the market and they have contacted various investors. Wilbur Ross is one of them,” said Sharma.
08/07/08 Daily News & Analysis

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Categories: Foreign Jul 2008, SpiceJet Jul 2008