Wilbur Ross got option for up to 32 pc stake: Spicejet

New Delhi : Billionaire private equity investor Wilbur Ross may become owner of up to one-third of carrier Spicejet by the next year, if he decides to execute the rights he got as part of a deal struck last year, the low-cost domestic airline has said.
Ross, who has invested about Rs 345 crore in the Delhi-based carrier, holds foreign currency convertible bonds (FCCBs) that can be converted into equity by December 2010.
"If Ross opts to covert his FCCB holdings, he will own about 32 per cent in the company," SpiceJet CEO Sanjay Aggarwal told PTI.
Government regulations currently allow only up to 49 per cent foreign direct investment and 100 per cent investment by an non-resident Indian through the automatic route.Dubai government's private equity arm Istithmar owns 13.4 per cent of the carrier, while FIIs hold about 10 per cent equity in the company.
In July last year, Ross had agreed to pump in 80 million USD through his private equity firm WL Ross & Co. Along with Ross, Goldman Sachs had also decided to put in 20 million dollars to bail out the cash strapped company, which now has about 10 per cent share in the aviation market in the country.
It may be recalled that the Airports Authority of India had issued an ultimatum to SpiceJet to pay up its dues or be charged landing and navigational fees on a cash-and-carry basis. Global financial services major Goldman Sachs was given equity warrants in December 2008, which had a lock-in period of one year.
26/01/09 PTI/The Hindu

To Read the News in full at Source, Click the Headline

Categories: Foreign Jan 2009, SpiceJet Jan 2009