UB Holdings subsidiary Kingfisher radio today made an open offer for 2.70 crore shares of Deccan Aviation, which aggregates to a 20% stake. UB Holdings had last week agreed to acquire 26% stake in Deccan Aviation subsidiary Air Deccan, which is India's largest budget airline.
The open offer for the additional 20% stake in Air Deccan has been made at a price of Rs 155 per share. The Air Deccan open offer, which is managed by Edelweiss Capital, opens on July 25 and closes on August 13.
UB Holdings will use a combination of internal accruals and borrowals to raise resources for the stake acquisition.
Last week, UB agreed to invest Rs 546 crore in Air Deccan in exchange for a 26% stake. Out of this, Rs 150 crore was to injected immediately, while the balance would come later.
With the Air Deccan buyout, Vijay Mallya gets to command the biggest Indian airline fleet of 71 aircraft - 41 Airbuses and 30 ATRs.
UB has also entered into a shareholders' agreement with the promoters of Air Deccan. According to the agreement, which entails changes in management, GR Gopinath will be the executive chairman, but will not have voting rights. UB will also have the first right of refusal in case any of the promoters wish to sell more than 5% stake in Air Deccan.
The Air Deccan stock price closed at Rs 143, down 0.03 per cent, while UB Holdings ended at Rs 637.60, up 2.11 per cent, on the Bombay Stock Exchange.
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The open offer for the additional 20% stake in Air Deccan has been made at a price of Rs 155 per share. The Air Deccan open offer, which is managed by Edelweiss Capital, opens on July 25 and closes on August 13.
UB Holdings will use a combination of internal accruals and borrowals to raise resources for the stake acquisition.
Last week, UB agreed to invest Rs 546 crore in Air Deccan in exchange for a 26% stake. Out of this, Rs 150 crore was to injected immediately, while the balance would come later.
With the Air Deccan buyout, Vijay Mallya gets to command the biggest Indian airline fleet of 71 aircraft - 41 Airbuses and 30 ATRs.
UB has also entered into a shareholders' agreement with the promoters of Air Deccan. According to the agreement, which entails changes in management, GR Gopinath will be the executive chairman, but will not have voting rights. UB will also have the first right of refusal in case any of the promoters wish to sell more than 5% stake in Air Deccan.
The Air Deccan stock price closed at Rs 143, down 0.03 per cent, while UB Holdings ended at Rs 637.60, up 2.11 per cent, on the Bombay Stock Exchange.
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