New Delhi: Co-founder Singh, who in the immediate past made his intent clear on taking over the beleaguered low-cost carrier, agreed on Thursday to buy a majority stake from its billionaire-owner Kalanithi Maran, who ran the airline into the ground with a series of flash sales at bargain basement prices in an attempt to woo customers-the strategy backfired badly as losses mounted.
After a SpiceJet Board meeting on Thursday, the company in a statement released to the Bombay Stock Exchange (BSE) said that Maran would transfer his entire stake to Singh as part of the revival plan.
The Board approved the proposal of the principal shareholder and promoter Maran and KAL Airways to transfer the ownership, management and control of the no-frills airline to Singh.
This was done under a 'Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet Limited' to be filed before the civil aviation ministry.
The Board has further directed SpiceJet to take further steps to implement and undertake necessary steps, including making an appropriate application before the ministry, for seeking approval of the 'Scheme'.
Singh, who is partnering with a unit of JPMorgan Chase and Co, showed interest after SpiceJet employees appealed to him to bail them out.
16/01/15 Business Today
After a SpiceJet Board meeting on Thursday, the company in a statement released to the Bombay Stock Exchange (BSE) said that Maran would transfer his entire stake to Singh as part of the revival plan.
The Board approved the proposal of the principal shareholder and promoter Maran and KAL Airways to transfer the ownership, management and control of the no-frills airline to Singh.
This was done under a 'Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet Limited' to be filed before the civil aviation ministry.
The Board has further directed SpiceJet to take further steps to implement and undertake necessary steps, including making an appropriate application before the ministry, for seeking approval of the 'Scheme'.
Singh, who is partnering with a unit of JPMorgan Chase and Co, showed interest after SpiceJet employees appealed to him to bail them out.
16/01/15 Business Today
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