Buoyed by the response to Air Deccan open offer, UB chairman Vijay Mallya hinted that he may be interested in hiking stake in the low-cost carrier to 51%, making it a direct subsidiary of his group.
Mallya's UB Holdings has made the mandatory open offer for 20% stake in Air Deccan's parent Deccan Aviation after it picked up 26% through preferential allotment in May this year. UB made the offer for 27 million outstanding shares, and has received in excess of 20 million shares till Friday morning. The open offer process, managed by Edelweiss, is closing on October 1.
"Some of the institutions wait till the last session to tender shares. I am confident of us receiving at least 20% shares," Mr Mallya told ET. Replying to a query on Kingfisher Airlines flying overseas, he added: "If I have 51% stake in Deccan, it becomes a subsidiary, giving me the right to fly overseas. Deccan will complete the mandatory five years of domestic operations next year."
Mr Mallya said the Deccan fleet has already begun sporting the bright red and white colours with the Kingfisher logo. This could be the format for international operations under the brand Deccan.UB Group CFO Ravi Nedungadi said the open offer was only for the mandatory 20%, and shares offered in excess will be treated on a pro-rata basis.
Meanwhile, one of Deccan's early investors, ICICI Ventures, has offloaded a part of its stake. It is believed that ICICI Ventures, which is holding around 10-11% stake, sold around 5% through an open market transaction, and not in the open offer.
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Source: ET
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