How do experts view Maran's acquisition of SpiceJet?

Being the market leader in the Southern television industry with its basket of successful channels, Sun TV promoter Kalanithi Maran has now put his foot in the aviation industry as he picked up 37.75% in low-cost carrier SpiceJet at Rs 47.25 per share amounting to Rs 750 crore. Maran will make an open offer for 20% at around Rs 57 per share,
Experts have given a thumbs up to the deal and expect it to give a leg up to the ‘not-so-profitable’ industry. Salil Pitle, ED-Investment Banking at Enam Securities says that the open offer price for SpiceJet has been calculated under SEBI guidelines.
Ajay Singh, Director, SpiceJet, says the deal is good for the company. "The deal will bring value for SpiceJet shareholders."
According to Nikhil Vora, IDFC Securities, the Maran’s acquisition is big positive for the stakeholders of SpiceJet and the stock needs to be given higher valuations now.
It is positive for SpiceJet shareholder but there is disappointment on the purchase price having made by the Maran Family, points out SP Tulsian, Investment Advisor.
Maran has bought the stake in individual capacity. Among other stakeholders, one promoter Ajay Singh and his family hold 10% while Goldman Sachs holds around 6%. The other promoter, the Kansagra Family, holds 12%, however over 50% of these shares are pledged.
Pitle explains that SpiceJet business is self-sustaining. There is no deal between Maran and Esthithmar. Maran will buy entire Ross equity post conversion, Pitle adds.
On a optimistic note, Vora says that with Maran joining the bandwagon, the Aviation will now have four big players which is a big positive sign for the sector.
14/06/10 Moneycontrol.com/News Center

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Categories: New Jun 2010, SpiceJet Jun 2010