Kalanithi Maran’s company Kal Airways buys shares in Spicejet

Kal Airways Pvt Ltd has purchased a 5.03 per cent stake in Spicejet for an estimated Rs 91.52 Crore. Kal Airways Pvt Ltd is owned by Kalanithi Maran of Sun TV and the purchase will be made up of 19.37 million shares in SpiceJet at 47.25 Indian rupees for every share. The deal was done via an off-market transaction and comes as part of the larger deal to acquire 37.7 per cent in the firm.
With this fresh purchase, Maran's direct holding in SpiceJet now stands at 17.72%. the acquisition of the SpiceJet stake is pursuant to a share purchase deal done four months ago that involved Maran, with Kal Airways Pvt Ltd meant to purchase 37.7 per cent in Spicejet from US investor Wilbur Ross and Royal Holdings Services, held by the Kansagra family, for around Rs.800 Cr.
Begun five years ago, the airline is eligible to fly abroad and had approached the Indian government for permission to operate regular flights to Dhaka, Kathmandu and Colombo. Airlines in India have to fly at least five years on domestic routes before they are eligible to fly overseas. SpiceJet fulfilled that requirement in May.
11/10/10 Invest in India

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Categories: SpiceJet Oct 2010, Sun Airways Oct 2010