Mumbai: Media baron Kalanithi Maran of Sun TV Network Ltd on Saturday has agreed to buy 37.75% stake in India’s second largest low-fare carrier SpiceJet Ltd from its promoter Bhupendra (Bhulo) Kansagra and distressed-assets buyout specialist Wilbur L. Ross for an undisclosed amount, according to two airline executives said.
Maran, who runs 20 television channels and two general newspapers in south India, will start the process of making an open offer to SpiceJet’s minority shareholders to acquire an additional 20% stake from Monday. Under Indian takeover rules, any acquisition of 15% or more triggers an open offer and the acquirer needs to make an offer for at least another 20% of the target company. Edelweiss Capital Ltd is exclusive adviser to the deal.
“On Saturday, Maran has agreed to buy out 37.75% stake from Kansagra and Ross. But the acquisition will completed in sequential manner over a period of time. Till then, the current board will remain as same,” he said, requesting anonymity.
He did not specify the broad contours of the acquisition.
Maran, elder brother of Union textiles minister Dayanidhi Maran, has been keen to enter the aviation industry and had even obtained a no-objection certificate from the ministry of civil aviation to run a non-scheduled air passenger service.
Kansagra, who owns 12.89% in the company through Royal Holding Services Ltd, said he will be on the board of SpiceJet for time being.