Analysts termed the exit of Kalanithi Maran and Kal Airways a distress sale.
Based on the share price of the airline at the close of trade on BSE, SpiceJet has a total market cap of Rs 998.30 crore. The investors gave their thumbs up to the deal, triggering a three per cent jump in its share value to Rs 18.65.
Following weeks of negotiation between the two, the SpiceJet board on Thursday approved the transfer of ownership, management and control of the company to Ajay Singh. The entry of new investors would lead to a change in the airline’s top-deck management, besides initiating restructuring of network, fleet and operations.
In a filing to BSE, the airline said that the move was pursuant to a ‘Scheme of Reconstruction and Revival’ for the takeover of ownership, management and control of SpiceJet, to be filed before the aviation ministry.
Tata group firm Ewart Investments and Kalpna Singh hold 1.79 per cent and 1.41 per cent respectively in the airline. The Marans would, however, remain an investor with a holding of warrants which could be converted into shares, totalling a 10 per cent stake. The public and institutions hold 45.69 per cent. Kalanithi Maran had bought controlling 37 per cent stake valued at Rs 750 crore in SpiceJet in 2010 from US investor Wilbur Ross and another promoter Bhupendra Kansagra.
Agency reports quoted JP Morgan Chase as one of the members of the consortium of investors led by Singh.
“We decline comment,” JP Morgan spokeswoman Mollica Senapati wrote in a reply to a Financial Chronicle email.
15/01/15 Nirbhay Kumar/mydigitalfc
Based on the share price of the airline at the close of trade on BSE, SpiceJet has a total market cap of Rs 998.30 crore. The investors gave their thumbs up to the deal, triggering a three per cent jump in its share value to Rs 18.65.
Following weeks of negotiation between the two, the SpiceJet board on Thursday approved the transfer of ownership, management and control of the company to Ajay Singh. The entry of new investors would lead to a change in the airline’s top-deck management, besides initiating restructuring of network, fleet and operations.
In a filing to BSE, the airline said that the move was pursuant to a ‘Scheme of Reconstruction and Revival’ for the takeover of ownership, management and control of SpiceJet, to be filed before the aviation ministry.
Tata group firm Ewart Investments and Kalpna Singh hold 1.79 per cent and 1.41 per cent respectively in the airline. The Marans would, however, remain an investor with a holding of warrants which could be converted into shares, totalling a 10 per cent stake. The public and institutions hold 45.69 per cent. Kalanithi Maran had bought controlling 37 per cent stake valued at Rs 750 crore in SpiceJet in 2010 from US investor Wilbur Ross and another promoter Bhupendra Kansagra.
Agency reports quoted JP Morgan Chase as one of the members of the consortium of investors led by Singh.
“We decline comment,” JP Morgan spokeswoman Mollica Senapati wrote in a reply to a Financial Chronicle email.
15/01/15 Nirbhay Kumar/mydigitalfc
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