SpiceJet, Religare fly close to deal

Bangalore: Even as its talks with media baron Kalanithi Maran were stuck in a limbo due to differences in pricing, promoters of budget airline SpiceJet Ltd — London-based Bhupendra Kansagra and family, Ajay Singh and others — are flying closer to Religare Voyages Ltd (RVL) and may soon finalise a deal.
According to sources in the no-frills airline, who did not want to be named, the Malvinder Singh-operated air charter and travel business company is close to picking up stake in SpiceJet. The source, however, could not give details on the value or contours of the deal that is being worked between the two parties. Religare is likely to go in for an open offer after it acquires the SpiceJet promoters’ stake.
The SpiceJet promoters and Religare Voyages have been in talks for some time now.
The last offer made by owner Sun Network was at around Rs 60-63 per share for a 51% stake; that was not acceptable to the SpiceJet promoters. Sources said Religare’s price could be between Rs 70 and Rs 75 per share.
06/04/10 Sachin P Mampatta/Praveena Sharma/Daily News & Analysis

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Categories: Foreign Apr 2010, spicejet Apr 2010