Mumbai: On a day when service tax department detained another Kingfisher plane for default, the second in two days, the airline announced it was in discussions with Abu Dhabi-based Etihad Airways for a stake sale which could revive the troubled airline’s fortune. Executives from Etihad Airways visited Kingfisher offices in Mumbai and Bangalore last week.
Kingfisher stock was up five per cent on Tuesday after a media report said a deal between the two would be announced next week. The report said Etihad had agreed to pick up 48 per cent in the airline for Rs 3,000 crore. While Etihad offered no comment for the story, its chief executive James Hogan told media last week that India and China were now key regions of focus for the airline. He said Etihad was in due diligence with a "couple" of Indian airlines. When asked about a possible deal, he replied : "Ask me in a couple of weeks.''
Kingfisher informed the Bombay Stock Exchange it was in discussions with many investors, including Etihad, but said no agreement had been signed. Kingfisher's market capitalisation is Rs 1,267 crore at current price and the UB Group owns a little over 35 per cent stake. The share price closed at Rs 15.67, up five per cent.
12/12/12 Business Standard
