Cayman private equity fund tailors deal to buy Deccan 360

Bangalore: A Cayman Islands-domiciled private equity fund has offered a package deal which could result in it acquiring Deccan 360, the ailing air cargo operator founded by low-cost aviation pioneer G R Gopinath, a person directly involved in the negotiations said.
Redclays Capital has offered to help raise $50 million ( 250 crore) for Gopinath's aviation services company Deccan Charters and buy Deccan 360 for between $2 million and $5 million, the person said, requesting anonymity.
If the transaction is finalised, it will mean that Gopinath and Mukesh Ambani-controlled Reliance Industries, the main shareholders in the moribund freight and logistics company, will have to cede ownership in what will essentially be a fire sale. Reliance, which paid about 110 crore in April 2010 for a 26% stake in Deccan 360, declined to comment for this story, as did Redclays managing director Srini Chakwal. Gopinath, too, did not reply to an email and phone calls.
Deccan 360, which was started in 2009, has been in a limbo for nearly a year. Three Airbus A-310 aircraft leased from Mauritius-based Veling have been returned to the lessors; nearly 600 employees were asked to look for jobs and two ATR aircraft have been grounded as the company has not been accepting new orders.
23/02/12 Economic Times

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Categories: Cargo Feb 2012, Foreign Feb 2012, New Feb 2012