Maran's SpiceJet offer puts spotlight on Tatas

Mumbai: Chennai-based media baron Kalanithi Maran of Sun TV Network has announced an open offer to public shareholders of SpiceJet which will kick in on August 6, a development that turns the spotlight on the Tata Group which owns a small stake in the low-fare carrier. The tea-to-telecom conglomerate through Ewart Investments holds 5.45%, according to SpiceJet's March quarter filing with the BSE and is one of the significant non-promoter shareholders after Goldman Sachs' 6% stake in the Gurgaon-based airline.
The Group in the winter of 2006 purchased a 7.5% equity interest in SpiceJet, in what was then seen as its soft entry into the airline sector for around Rs 100 crore. At that time, the SpiceJet scrip was trading at Rs 50.
The Group may not be disappointed with its investment in SpiceJet that has done well in an otherwise turbulent airline environment. The carrier for the first time posted a profit of Rs 61.4 crore in fiscal 2010.
Maran through his Kal Airways bought promoter Bhulo Kansagra and financial investor WL Ross' combined stake of nearly 38% in SpiceJet and is making an open offer for an additional 20% stake to provide an exit route to minority shareholders in line with India's takeover laws.
11/07/10 Reeba Zachariah/Times of India

To Read the News in full at Source, Click the Headline

Categories: SpiceJet Jul 2010, Sun Airways Jul 2010