PremjiInvest explores stake in Deccan Cargo

Bangalore/Mumbai: After the business tycoon Vijay Mallya's takeover of Air Deccan, it is IT chief Azim Premji who is eyeing opportunities at the Deccan brand. The IT chief's equity arm, PremjiInvest is poring over a stake buy in GR Gopinath's new cargo airline Deccan Cargo.
The one billion dollar equity firm which was set up earlier this year is trying to grab a portion of the $150 million funding seeked by the airline. The entry of PremjiInvest comes even as the deal faces valuation challenges with sect
oral analysts indicating that Gopinath, who currently hold 99 percent stake at the company, may have to divest a significant stake in rather difficult market conditions.
As reported by Economic Times, other companies like Anil Dhirubhai Ambani Group (ADAG), New Enterprise Associates (NEA) and Intel Capital has shown their interest in the company too. Infact, Deccan Cargo is expected to be a low-cost competitor in logistic business, which may have drawn the interest of the two U.S. firms NEA and Intel Capital. The company has selected Nagpur as its cargo hub from where it will service over 40 centres across the country with a fleet of 10 Airbus.
07/11/08 Siliconindia.com

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Categories: Cargo Nov 2008, Deccan Cargo Nov 2008, New Nov 2008