Wilbur Ross may invest $80 million in SpiceJet

Wilbur Ross may invest $80 million in SpiceJet
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First Published: Mon, Jul 14 2008. 11 41 PM IST
Updated: Mon, Jul 14 2008. 11 41 PM IST
Wilbur Ross and Co., a private equity firm run by US billionaire investor Wilbur Ross, may invest $80 million (Rs342.4 crore) in SpiceJet Ltd, India’s second largest low-cost carrier.
The deal, which could involve a dilution of equity of the Gurgaon-headquartered airline, will be announced shortly, two persons with direct knowledge of the transaction said. Wilbur Ross will receive a preferential allotment of shares worth $65 million in the first stage, while the remaining $15 million will be transferred to it after the Dubai-based investment firm Ishtitmar PJSC converts part of the convertible debt it has extended to SpiceJet into equity.
The valuation of the Ross deal is at Rs30 a share.
Earlier in the day, shares of SpiceJet fell the most in more than three months in Mumbai trading after chairman Siddhanta Sharma said he will quit the company.
SpiceJet fell 13% to Rs28.05 at 10:27am in Mumbai. Sharma will leave the New Delhi-based airline on 31 July due to personal reasons, he said in a phone interview on Monday.
India’s UB Group, which runs the Kingfisher Airlines Ltd carrier, is seeking to buy SpiceJet, the ‘Economic Times’ reported on 5 July.
SpiceJet has declined 67% so far this year, with the benchmark Sensex index falling 34%. On Monday, SpiceJet closed at Rs27.95, down 13.73%, while the benchmark index fell 1.1%.
pr.sanjai@livemint.com
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First Published: Mon, Jul 14 2008. 11 41 PM IST