Marans close in on SpiceJet buy

Media magnate, Mr Kalanithi Maran, is close to buying about 37 per cent equity in low cost carrier SpiceJet at an estimated Rs 45 a share that would cost him about Rs 700 crore.

“They are in dialogue and may strike a deal in a day or two,” a source close to the development said.
“If they (Marans) want to have majority stake in the company, they may have to spend a lot more than an estimated about Rs 700 crore for the stake of Mr Bhupendra Kansagara and Mr Wilbur Ross,” the sources said, adding that a majority stake would necessitate an open offer.
This could entail an outgo of over Rs 1,000 crore in case an open offer for 20 per cent stake is made pursuant to acquisition of 37 per cent stake of promoters, the source said.
Spicejet closed the day three per cent lower at Rs 56.05 a share on BSE though trading sentiment was favourable and the Sensex rose 142 points to end at 17,064.95 points.
The carrier claims a market share of 13 per cent and operates 129 flights daily to 18 cities, with a fleet of 19 Boeing aircraft.
It plans to launch international flights, starting with services to neighbouring Bangladesh and Nepal from this month.
While Spicejet officials remained tight-lipped about the reports, some of which said that the deal has been clinched, its promoters including Mr Bhupendra Kansagara could not be contacted despite several attempts.
On the other hand, top officials of Mr Maran’s Sun TV denied any knowledge of the development. Mr Kalanithi Maran or other promoters could not be contacted for comments.
The deal could involve Mr Maran buying 31 million shares of Mr Bhupendra Kansagara and 125 million shares of Mr Ross.
The airline has seen interest from domestic and inte-rnational investors for nearly four years now. — PTI

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