Deal with Ross is ‘alive’, says SpiceJet
Budget carrier SpiceJet, which received an $80-million investment commitment from billionaire investor Wilbur Ross last month, has said the company was not in talks with any other investor.
By ET Bureau |
MUMBAI: Budget carrier SpiceJet, which received an $80-million investment commitment from billionaire investor Wilbur Ross last month, has said the company was not in talks with any other investor. There were reports that Vijay Mallya-owned Kingfisher Airlines may be investing in the company following a delay in the transaction with Ross. The deal with Ross is ���alive��� and will be concluded within a few weeks, said SpiceJet sources.
���Nothing has gone wrong since we announced the deal with WL Ross last month. The delay, if there is any, is normal,��� said the SpiceJet spokesperson. Ajay Singh, director of SpiceJet and owner of about 4% stake in the low-cost carrier, could not be contacted. He did not reply to text messages also. Last month, American PE firm WL Ross & Co, promoted by Ross, had announced an investment of $80 million in SpiceJet. The fund infusion is aimed at clearing the budget carrier���s debt as well as meeting its working capital requirements. SpiceJet owes about Rs 55 crore to its creditors.
Analysts said a deal with Kingfisher might put a question mark on the identity of SpiceJet and, therefore, the SpiceJet management would not allow it to happen.
An analyst working with a foreign brokerage said: ���You may consider the WL Ross-SpiceJet deal is a done one. There is no scope for any other investor like Kingfisher to enter the scene now.���
���Nothing has gone wrong since we announced the deal with WL Ross last month. The delay, if there is any, is normal,��� said the SpiceJet spokesperson. Ajay Singh, director of SpiceJet and owner of about 4% stake in the low-cost carrier, could not be contacted. He did not reply to text messages also. Last month, American PE firm WL Ross & Co, promoted by Ross, had announced an investment of $80 million in SpiceJet. The fund infusion is aimed at clearing the budget carrier���s debt as well as meeting its working capital requirements. SpiceJet owes about Rs 55 crore to its creditors.
Analysts said a deal with Kingfisher might put a question mark on the identity of SpiceJet and, therefore, the SpiceJet management would not allow it to happen.
An analyst working with a foreign brokerage said: ���You may consider the WL Ross-SpiceJet deal is a done one. There is no scope for any other investor like Kingfisher to enter the scene now.���
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