ADAG eyes 33% stake in Gopinath`s cargo airline

Anil Dhirubhai Ambani Group (ADAG) once again is warming up to aviation entrepreneur Capt GR Gopinath after losing out on acquiring Air Deccan last year, reports Economic Times.
It is learnt that ADAG`s private equity arm, Reliance Equity Advisors, is discussions to invest over USD 50 million in Gopinath`s new venture, Deccan Cargo in return for a significant minority stake in the start-up airline.
Gopinath`s new dream of linking India`s distant hinterlands to the mainstream markets is expected to take off in January next year with fleet of Airbus aircraft.
Others in the list to pick up a slice of Deccan Cargo include New Enterprise Associates (NEA) and Intel Capital, these are US ventures capital
It is understood that the potential investors could value the cargo airline at about USD 150 million even though valuation come under stress in difficult market conditions. This could see Gopinath diluting about 33% stake for raising over USD 50 million.
06/11/08 Myiris.com

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Categories: Cargo Nov 2008, New Nov 2008