Indian media mogul's airline takeover delayed

A move by Indian television mogul Kalanithi Maran to take majority control of profitable no-frills airline SpiceJet has been delayed, two weeks after the carrier said it planned to buy another 30 Boeing 737-800 passenger jets as part of an aggressive fleet expansion.
Chennai-based Maran, one of the richest men in India with a net worth of more than A$3 billion, announced in June that he was buying an initial 37.7 per cent of SpiceJet and would offer to buy another 20 per cent from August 6 to August 25 as required under India’s takeover rules.
But Enam Securities, lead manager of the offer, said in letter to the Bombay Stock Exchange dated August 6 that the offer dates were being changed and a revised schedule would be announced after the market regulator, the Securities Exchange Board of India, had approved the draft letter of offer. The update was released on August 12.
Aviation newcomer Maran hopes to tap into a domestic air travel market expected to grow at better than 20 per cent this year to more than 45 million passengers.
Maran, through his private company KAL Airways, is paying 7.39 billion rupees (A$184 million) for the first 37.7 per cent of SpiceJet, and had offered to pay about 4.79 billion rupees (A$119 million) for another 20 per cent.
Maran bought his 37.7 per cent stake from the airline’s original promoter, London-based Indian businessman Bhupendra (Bhulo) Kansagra, and New York equity-fund investor W.L. Ross.
Since Maran’s entry in June, Dubai World’s investment arm Istithmar has sold its 13 per cent stake, leaving only Goldman Sachs with 6 per cent and the Tata Group’s Ewart Investments with 5.5 per cent as the remaining large investors outside the promoters.
26/08/10 Geoff Hiscock/The Australian

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

Categories: SpiceJet Aug 2010