Kalanithi ups SpiceJet bid, with ADAG, Religare hovering about

The race to buy a big stake — even majority —in budget carrier Spicejet Ltd is getting hotter.
Media baron Kalanithi Maran has hiked his bid for 51% stake in India’s second-largest no-frills airline by around 14% to Rs800 crore from Rs700 crore earlier.
When the owner of Sun Network, south India’s biggest media company, had begun talks some months back (DNA first reported this on February 19), he had offered Rs450 crore for a majority stake.
A SpiceJet source, who did not wish to be named, said an entity belonging to the Anil Dhirubhai Ambani Group (ADAG) is also carrying out due-diligence at present.
SpiceJet has been desperately looking to raise funds for its expansion plans. The airline will begin flying overseas by the middle of this year.
Company and merchant bank sources said Religare Enterprise Ltd, the financial services company promoted by Malvinder Singh of Ranbaxy, is also keen on investing.
They said Maran has hiked his bid looking at the interest of other investors in the company.
“Maran knows SpiceJet’s need for cash. That is why he had made discounted offers earlier. He is now ready to pay Rs60-63 per share instead of the Rs55 per share,” said one of the sources. Company sources said the dark horse could be Religare, which is keen on entering the commercial aviation space.
31/03/10 Daily News & Analysis

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Categories: spicejet Mar 2010