SBI, ICICI Bank pick up about 11% stake in Kingfisher

State Bank of India and ICICI Bank have together picked up close to 11 per cent stake in debt-trapped Kingfisher Airlines as part of debt recast process.
SBI was alloted 2.8 crore equity shares on preferential basis on account of conversion of compulsorily convertible preference shares under corporate debt restructuring, the bank informed the Bombay Stock Exchange.
By virtue of the allotment of shares, the SBI stake in the airline was 5.67 per cent and the value of the holding was Rs 182.25 crore (Rs 1.82 billion).
At the same time, another lender ICICI Bank was also allotted 2.6 crore shares against the loan it had given to the airline.
With the allotment the bank's equity holding in the airline stands at 5.3 per cent worth Rs 169.9 crore in value terms.
In aggregate, the holding of both the banks in the airline was about 10.97 per cent and the allotment of shares to the banks was done on March 31, 2011.
This cashless transaction is a part of corporate debt restructuring agreed by banks and the airline company.
Even other large lenders like IDBI Bank, Bank of Baroda and Punjab National Bank have also got some stake in the airline company owing to conversion of a portion of debt.
Under the plan, Kingfisher, controlled by United Breweries Holdings, had agreed to convert Rs 1,355 crore worth loan into shares, besides a plan to convert the founders' debt of up to Rs 648 crore into share capital.
The airline had mandated SBI Caps for the debt restructuring.
07/06/11 PTI/Rediff.com

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Categories: Kingfisher Apr 2011