Mallya stake in Kingfisher to drop below 50%

Bangalore: Vijay Mallya, promoter of debt-ridden Kingfisher Airlines, would have his stake falling a little below 50 per cent in the company if a comprehensive debt restructuring is approved by the shareholders on December 20.
On a fully diluted basis, it will drop by little over 16 per cent from the current 66 per cent. The promoters’ holding will further drop, if a planned issue of Global Depository Receipts (GDR) for $250 million fructifies during the fourth quarter of 2011. The extent will depend on the pricing, yet to be decided.
The board of Kingfisher during late November approved conversion of lenders’ debt of up to Rs 1,355 crore and the promoters’ debt of Rs 648 crore into share capital.
Under the package, Kingfisher will sell 5.75 million shares to a consortium of lenders. It will also sell 7.8 million of the 7.5 per cent convertible shares.
15/12/10 Business Standard

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Categories: Kingfisher Dec 2010