United Breweries (Holdings) is planning to sell about 20% stake in its consolidated aviation business—comprising Kingfisher Airlines and Air Deccan—to private equity investors. It hopes to raise around $250 million through the equity dilution. Four private equity giants, including Cerberus Capital, TPG and Blackstone, have initiated talks. Cerberus is believed to be the front-runner.
The stake, sources said, is being sold in a subsidiary of UB (Holdings), which owns 83% of Kingfisher Airlines and 100% of Kingfisher Radio. Kingfisher Radio, in turn, holds 26% in Deccan Aviation, the parent of the low-cost airline. The proposed open offer, if successful, will take Kingfisher Radio’s stake in Deccan Aviation to 46%.
Read more in The Economic Times article.
Showing posts with label Air Deccan. Show all posts
Showing posts with label Air Deccan. Show all posts
Monday, July 23, 2007
Thursday, July 19, 2007
UB raises debt for Deccan buy
UB Group has raised Rs 550 crore as debt financing from IDFC, HDFC and IL&FS for its stake buy in Air Deccan.These institutions could pour in more debt as the group company UB Holdings is set to make an open offer for additional 20% stake in Deccan Aviation, the parent of the low-cost airline, shortly.
On May 31, UB Holdings bought 26% stake in Deccan Aviation for Rs 550 crore, and announced plans for a mandatory open offer. At the time of the acquisition, UB indicated that it could rope in financial investors for de-leveraging the acquisition partially, as it had received several expressions of interest from PE funds. But with debt financing clinched, UB is not likely to divest stake for de-leveraging.
UB has tied up debt financing from IDFC and HDFC for over Rs 400 crore. “The debt financing has been arranged for funding most of the 26% purchase,” a top UB official said, without divulging the name of the institutions. IL&FS is believed to have pumped in the remaining Rs 150 crore.
Read more in The Economic Times article
On May 31, UB Holdings bought 26% stake in Deccan Aviation for Rs 550 crore, and announced plans for a mandatory open offer. At the time of the acquisition, UB indicated that it could rope in financial investors for de-leveraging the acquisition partially, as it had received several expressions of interest from PE funds. But with debt financing clinched, UB is not likely to divest stake for de-leveraging.
UB has tied up debt financing from IDFC and HDFC for over Rs 400 crore. “The debt financing has been arranged for funding most of the 26% purchase,” a top UB official said, without divulging the name of the institutions. IL&FS is believed to have pumped in the remaining Rs 150 crore.
Read more in The Economic Times article
Monday, June 4, 2007
UB starts talks with FIs to fund Deccan take over
Vijay Mallya-promoted UB Group, which has acquired 26 per cent stake in Air Deccan for Rs550 crore and is to buy another 20 per cent through an open offer, has initiated talks with financial institutions to fund the takeover.
UB Holdings has only four weeks time to tie up funds and the process of talks with financial institutions have begun, said UB Group Chief Financial Officer Ravi Nedungadi.
Last week, Mallya's UB Group paid an advance of Rs 150 crore toward the 26 per cent stake -- which would be through an issue of 96,77,419 fully paid-up equity shares.
The remaining amount would be paid to Air Deccan's promoter Deccan Aviation Ltd in the coming four weeks. The transaction had valued Air Deccan at Rs 155 a share.
Read more in The DNA Money article.
UB Holdings has only four weeks time to tie up funds and the process of talks with financial institutions have begun, said UB Group Chief Financial Officer Ravi Nedungadi.
Last week, Mallya's UB Group paid an advance of Rs 150 crore toward the 26 per cent stake -- which would be through an issue of 96,77,419 fully paid-up equity shares.
The remaining amount would be paid to Air Deccan's promoter Deccan Aviation Ltd in the coming four weeks. The transaction had valued Air Deccan at Rs 155 a share.
Read more in The DNA Money article.
Paramount Airways woos GoAir for buyout
After Air India-Indian Airlines, Jet Airways-Sahara and Kingfisher-Deccan Aviation, another aviation merger is in the air.
Madurai-based Paramount Airways is interested in acquiring the Mumbai-based budget carrier GoAir, promoted by the Wadia group.
Sources close to the developments said the investment bankers of Paramount Airways have expressed their interest and initiated discussions with GoAir representatives. The talks, however, have not made much headway as yet as GoAir is reluctant to move ahead.
Paramount Airways, which currently operates only in south India, has firmed up plans to enter the western region. GoAir has only four leased aircraft but Paramount is more interested in its slots, parking bays, pilots and other infrastructure, sources said.
GoAir had earlier indicated its plan to dilute 26-40 per cent equity through a private equity placement.
Read more in The Economic Times article.
Madurai-based Paramount Airways is interested in acquiring the Mumbai-based budget carrier GoAir, promoted by the Wadia group.
Sources close to the developments said the investment bankers of Paramount Airways have expressed their interest and initiated discussions with GoAir representatives. The talks, however, have not made much headway as yet as GoAir is reluctant to move ahead.
Paramount Airways, which currently operates only in south India, has firmed up plans to enter the western region. GoAir has only four leased aircraft but Paramount is more interested in its slots, parking bays, pilots and other infrastructure, sources said.
GoAir had earlier indicated its plan to dilute 26-40 per cent equity through a private equity placement.
Read more in The Economic Times article.
Friday, June 1, 2007
Shares of Deccan, UB Holding soar 10 pc on BSE
Shares of both Deccan Aviation and UB Holdings today surged nearly 10 per cent in early morning trade on the Bombay Stock Exchange after Vijay Mallya's UB Group acquired 26 per cent in the low-cost carrier for Rs 550 crore.
The scrip of Deccan Aviation jumped Rs 13.80 to touch a high of Rs 160 on the Bombay Stock Exchange (BSE) and over 17.24 lakh shares exchanged hands on the bourse. The shares opened firm at Rs 151 in the morning, surged 9.43 per cent, and were trading at Rs 151.55, up 3.66 per cent on the BSE at 11.12 am.
Scrip of United Breweries Holdings on the other hand jumped Rs 68.35 or 9.99 per cent and touched a high of Rs 752.15 with over 1.68 lakh shares being traded on the bourse. United Breweries Holdings was last trading at Rs 726.25, up 6.54 per cent on the BSE.
Read more in The Economic Times article.
The scrip of Deccan Aviation jumped Rs 13.80 to touch a high of Rs 160 on the Bombay Stock Exchange (BSE) and over 17.24 lakh shares exchanged hands on the bourse. The shares opened firm at Rs 151 in the morning, surged 9.43 per cent, and were trading at Rs 151.55, up 3.66 per cent on the BSE at 11.12 am.
Scrip of United Breweries Holdings on the other hand jumped Rs 68.35 or 9.99 per cent and touched a high of Rs 752.15 with over 1.68 lakh shares being traded on the bourse. United Breweries Holdings was last trading at Rs 726.25, up 6.54 per cent on the BSE.
Read more in The Economic Times article.
Thursday, May 31, 2007
Mallya nets 26% Air Deccan stake for Rs 550cr
Vijay Mallya today moved decisively towards controlling the largest share of the domestic aviation market. His UB Holdings, the parent company of Kingfisher Airlines, is acquiring 26 per cent of Bangalore-based Deccan Aviation’s equity for close to Rs 550 crore, pegging its valuation at Rs 2,200 crore.
The markets, anticipating this, boosted the stock of Deccan Aviation, which runs India’s first low-cost carrier Air Deccan, by 11% to Rs 146 at the close of trade on Bombay Stock Exchange. The offer of Rs 155 a share represents the 26-week average.
Deccan has 18% share of the market and Kingfisher close to 11%. Market leader Jet Airways as 25%.
Deccan Aviation is making a preferential allotment of a little over 35 million shares to UB, after which UB will be required under the law to make an open offer for another 20% at the same price. If the offer is fully subscribed, UB will have to pay another Rs 425 crore to take its total holding to 46%.
Read more in The Business Standard article.
The markets, anticipating this, boosted the stock of Deccan Aviation, which runs India’s first low-cost carrier Air Deccan, by 11% to Rs 146 at the close of trade on Bombay Stock Exchange. The offer of Rs 155 a share represents the 26-week average.
Deccan has 18% share of the market and Kingfisher close to 11%. Market leader Jet Airways as 25%.
Deccan Aviation is making a preferential allotment of a little over 35 million shares to UB, after which UB will be required under the law to make an open offer for another 20% at the same price. If the offer is fully subscribed, UB will have to pay another Rs 425 crore to take its total holding to 46%.
Read more in The Business Standard article.
Friday, May 18, 2007
Anil boarding Air Deccan?
On Thursday, the Street was abuzz with a strong rumour that the pioneer of low-cost aviation could be within striking distance of a deal with Reliance’s Anil Dhirubhai Ambani Group (ADAG). Industry sources in the know of Gopinath’s talks with various investors said a final word is still some time away.
Gopinath is in the process of raising $75-100 million for the expansion of his business. He has revealed he could dilute between 15 and 26% stake of his airline to a suitable professional (not strategic) investor.An analyst said the rumour was sparked by Capt Gopinath’s Mumbai visit, from moving on to London.
Meanwhile, analysts are putting one and one together and speculating that Capt Gopinath could well be opening talks with Kingfisher Airline chairman Vijay Mallya, who, on Wednesday, sealed an acquisition deal with Scottish whisky maker Whyte & Mackay.
Industry sources ruled it out saying “It is not in that connection.” Gopinath has publicly spurned Mallya’s interest in his carrier, saying Mallya should mind his own business.
Read more in DNA Money article.
Gopinath is in the process of raising $75-100 million for the expansion of his business. He has revealed he could dilute between 15 and 26% stake of his airline to a suitable professional (not strategic) investor.An analyst said the rumour was sparked by Capt Gopinath’s Mumbai visit, from moving on to London.
Meanwhile, analysts are putting one and one together and speculating that Capt Gopinath could well be opening talks with Kingfisher Airline chairman Vijay Mallya, who, on Wednesday, sealed an acquisition deal with Scottish whisky maker Whyte & Mackay.
Industry sources ruled it out saying “It is not in that connection.” Gopinath has publicly spurned Mallya’s interest in his carrier, saying Mallya should mind his own business.
Read more in DNA Money article.
Wednesday, May 9, 2007
Air Deccan rules out sale to beer billionaire, Vijay Mallya
Air Deccan, India’s largest low-fare carrier, on 8 May ruled out a sale to billionaire Vijay Mallya, saying a combination of the two airlines would make no cultural or business sense.Gopinath, who is known to his airline employees as Captain Gopi, said there was “absolutely” no chance of Air Deccan selling a stake to Kingfisher.
Still the bespectacled, low-key entrepreneur said he got along well with Mallya, a flaymboyant tycoon who has named his airline after the flagship beer brand of his UB Group.Mallya said on 7 May in New Delhi, at a press conference with Airbus Industries, that he was interested in buying Air Deccan but an acquisition was not imminent.
Air Deccan last week denied media reports that it was in talks with Kingfisher Airlines.
A deal would create an airline that would control 38% of India’s domestic aviation market, overtaking the 33% share of Jet Airways, which last month bought rival Air Sahara for Rs14.5 billion.
Read more in The Live Mint article.
Still the bespectacled, low-key entrepreneur said he got along well with Mallya, a flaymboyant tycoon who has named his airline after the flagship beer brand of his UB Group.Mallya said on 7 May in New Delhi, at a press conference with Airbus Industries, that he was interested in buying Air Deccan but an acquisition was not imminent.
Air Deccan last week denied media reports that it was in talks with Kingfisher Airlines.
A deal would create an airline that would control 38% of India’s domestic aviation market, overtaking the 33% share of Jet Airways, which last month bought rival Air Sahara for Rs14.5 billion.
Read more in The Live Mint article.
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