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 UB Holdings. Show all posts
Showing posts with label UB Holdings. Show all posts
Monday, July 23, 2007
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.
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.
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