UB makes open offer for additional 20% in Deccan

UB makes open offer for additional 20% in Deccan
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First Published: Wed, Jun 06 2007. 06 37 PM IST
Updated: Wed, Jun 06 2007. 06 37 PM IST
PTI
Mumbai: Vijay Mallya-led UB Group, which has acquired 26% in Deccan Aviation Ltd, made an open offer on 6 June to shareholders of the company to buy an additional 20% stake for about Rs420 crore.
Kingfisher Radio, a subsidiary of United Breweries Holding Ltd, made the offer for acquiring 27 million shares of Deccan Aviation at a price of Rs155 a share.
The offer, being managed by Edelweiss Capital, would open from 25 July and close on 13 August, the company said in a public announcement.
UB group will use a combination of internal accruals and loans to fund the acquisition.
UB Holdings had on 31 May announced acquisition of 26% stake in Deccan for Rs546 crore. The company had made an initial investment of Rs150 crore in the carrier and a further Rs396 crore would be invested by this month-end for the 26% stake.
According to the announcement, in case requisite approvals are not received from shareholders, the agreement for the acquisition would be cancelled and the Rs150 crore advance paid would have to be refunded.
With the acquisition, the Kingfisher-Air Deccan combine would have the largest fleet of 71 aircraft — 41 Airbus and 30 ATR aircraft — in the domestic market.
Shares of Deccan Aviation closed at Rs143, down 0.03%, while UB Holdings ended at Rs637.60, up 2.11%, on the Bombay Stock Exchange on 6 June.
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First Published: Wed, Jun 06 2007. 06 37 PM IST
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