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Updated: June 13, 2010 02:49 IST

Kalanidhi Maran buys 37.7 p.c. stake in SpiceJet

PTI
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Kalanidhi Maran
The Hindu Kalanidhi Maran

Media magnate Kalanidhi Maran on Saturday entered into an agreement to acquire 37.7 per cent equity in low-cost airline SpiceJet for an estimated Rs. 750 cr., thus becoming its single largest stakeholder.

The stake has been acquired by Mr. Maran, Chairman and MD of Chennai-based Sun TV Network, in his individual capacity and through his aviation company KAL Airways.

The shares have been acquired from current SpiceJet promoters, American investor Wilbur Ross and his investment companies, and Kansagara family-promoted Royal Holding Services Ltd. The deal is said to have been reached after several rounds of intense negotiations.

While the price at which the deal was struck could not be confirmed, sources said Mr. Maran bought the stake at a price of around Rs. 48 per share, entailing a total payout of about Rs. 750 crore.

According to the sources, the mandatory open offer to acquire an additional 20 per cent stake in SpiceJet will be around Rs. 58 per share.

As on March 31, 2010, public shareholding in SpiceJet stood at 87.15 per cent including 34.28 per cent held by institutional investors from India and abroad.

SpiceJet's share closed on Friday at Rs. 56.05 a share, three per cent lower from its previous close, on the Bombay Stock Exchange though market sentiment was favourable and the BSE benchmark index Sensex shot up by 142 points to end at 17,064.95 points.

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