SpiceJet stakeholders reject ADAG offer

New Delhi: Key shareholders of low-cost airline SpiceJet have rejected an offer by the Reliance ADA Group to pick up a 51 per cent stake in the airline for Rs 40-45 per share. The offer was made last week.
The company’s share price was Rs 63 at the close of trading on Friday at the Bombay Stock Exchange. The price offered by Reliance is, thus, about a third lower than the prevailing market price at which the company’s shares closed at the Bombay Stock Exchange on Friday.
Senior executives in the know of the ADAG offer said the key shareholders wanted Rs 60-70 per share. ADAG had approached both W L Ross India (a private equity investor) as well as the Kansagara family to buy out their stakes.
The ADAG offer is higher than that of another suitor, Sun TV promoter Kalanithi Maran. He had offered to buy a similar stake at Rs 39 a share. This would have valued the company at Rs 950 crore.
The Religare group, promoted by brothers Malvinder and Shivinder Singh, had also shown interest in the airline, though details are not available.
12/04/10 Surajeet Das Gupta/Business Standard

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Categories: spicejet Apr 2010