UB arm makes open offer for Air Deccan

BANGALORE: Kingfisher Radio, a wholly-owned subsidiary of United Breweries Holdings Ltd will make an open offer to shareholders of Deccan Aviation, which owns Bangalore-based low-cost carrier Air Deccan.

The open offer commencing July 25 will see Kingfisher Radio picking up 27 million shares at a price of Rs 155 per share. The offer is managed by Edelweiss Capital and would close on August 13. The open offer, in line with Sebi norms, follows the 26% preferential issue made by Deccan Aviation to UB Holdings.

On May 31, UB Holdings had announced acquisition of 26% stake in Deccan Aviation for Rs 546 crore. The company had made an initial investment of Rs 150 crores.

Curiously enough, Kingfisher Radio which is involved in this transaction was set up in 1999 to promote and sell media such as satellite, video, television and radio besides deploying funds by way of investments in assets, properties, securities etc.