The country’s second-largest budget carrier SpiceJet Ltd’s former promoter Ajay Singh is back in control of the airlines as he has now completed the acquisition of the entire holding of 58.46 per cent held by media magnate Kalanithi Maran, as per a stock market disclosure.
The disclosure did not say at what price the transaction was sealed. At the current market price, this stake is worth Rs 856 crore.
Singh has again become promoter of the company as part of the revival plan that would also see a separate capital infusion of a little over Rs 1,875 crore ($300 million) from new as well as outgoing promoter Maran. Maran would need to pump back a part of the proceeds from the share sale, through non-convertible securities.
“Ajay Singh has become the promoter of the company and Kalanithi Maran and Kal Airways Private Limited have ceased to be promoters of the company,” the filing said.
Maran had last month stepped down from the board of the company.
The deal has recently received clearance from the Competition Commission of India (CCI). The carrier also got its board’s approval for the deal in late January.
Maran had acquired majority stake in SpiceJet over a period of time starting with a significant minority stake in mid-2010 for Rs 750 crore. He had later pumped in more cash to hike his stake.
Singh, who, along with NRI Bhupendra Kansagra, had started SpiceJet in 2005 exited the company in 2010. He has now acquired a controlling stake in the loss-making airline, reportedly, with the backing of JPMorgan to restructure and revive the airline.
SpiceJet is the second-largest budget carrier in the country behind IndiGo and overall the fourth-largest carrier by passenger numbers.
The company’s scrip was quoting at Rs 24.45 a share, up 2.08 per cent in mid-day trades on the BSE in a flat Mumbai market on Tuesday.
(Edited by Joby Puthuparampil Johnson)