Kingfisher Airlines Ltd. Thursday said it will retain its cap on foreign institutional investments at 3%, a move which analysts see as an effort to ensure that it can offer attractive options to any foreign airline interested in buying a stake.
It said that it is retaining the limit to keep its capital structure in "readiness for transactions."
Indian regulations allow foreigners to own a total of 49% in local air carriers. So, with Kingfisher leaving its FII cap at 3%, it is now free to sell a 46% stake to overseas airlines such as Etihad Airways.
Tuesday, cash-strapped Kingfisher confirmed that it is in stake sale talks with Etihad and other investors.
13/12/12 Dow Jones Newswires/FoxBusiness.com
