Ishtitmar to convert SpiceJet bonds, sell shares

Mumbai: Ishtitmar Capital World, the investment arm of Dubai World, has decided to convert bonds of no-frills carrier SpiceJet into equity shares to sell them in the open market, said a person close to the matter.
The person, requesting anonymity, said the investment firm has appointed Bank of America Merrill Lynch to find buyers for its stake, which will be around 9% on conversion. The conversion is due next week.
Ishtitmar holds $12 million (about Rs 56.3 crore) worth of foreign currency convertible bonds (FCCB) in SpiceJet. The conversion rate is Rs 25 a share, a 60% discount to the stock’s close on Wednesday at Rs 58. Ishtitmar’s 9% stake is pegged at Rs 125 crore.
SpiceJet CEO Sanjay Aggarwal confirmed Ishtitmar’s plan to convert bonds into equity.
10/06/10 Manisha Singhal/Economic Times

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Categories: Foreign Jun 2010, SpiceJet Jun 2010