Coimbatore-based carrier Paramount Airways is planning to buy back 5% stake held in the company by external investors. The deal is likely to be announced in a few weeks and the domestic airline is likely to be valued at around $200 million, reports the Economic Times. The report states that Kotak Private Equity holds majority of the 5% stake, while the rest of the 95% stake is held by the promoter family.
The buy back will be funded through Paramount’s group companies. Earlier Paramount’s managing director M Thiagarajan told Hindu Business Line that they own 100% in every group company, and would like the same for the aviation business.
Earlier reports have stated that Kotak Private Equity through its India Growth Fund had picked up a 10% stake for $14-15 million in 2005. Bennett, Coleman & Company Ltd, the publishers of Times of India and Economic Times, had also picked up a stake in that deal.
Paramount currently has a presence in South only, where it claims to be the market leader with a 26% market share. It is now planning an expansion to the East and international flights.
Paramount is an all business class airline. Its fleet comprises of seven Embraers and has ordered 20 more to be delivered over the next two years.
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