Ajay Singh re-boards SpiceJet with Rs 1,500-cr deal; Marans exit

January 15, 2015 21:49

Cash-strapped SpiceJet's original promoter Ajay Singh today returned to the airline with a long-term plan entailing an investment of up to Rs 1,500 crore, as Maran family agreed to cede control with transfer of over 53 per cent stake in the carrier.

Singh, who is in talks to rope in more investors including foreign entities, would get 53.48 per cent stake, currently worth about Rs 500 crore, in the airline from the Maran family as part of the deal approved by the SpiceJet board today.

"The airline has given a revival and restructuring plan to the Civil Aviation Ministry for change in control, which has to be cleared by it. Once they do it, we will execute the revival plan," Singh told PTI here tonight.

An open offer for purchase of further 26 per cent from public shareholders (worth about Rs 250 crore) will be made if asked by the market regulator Sebi.

Kalanithi Maran-led Sun Group would also infuse Rs 80 crore in the loss-making airline following conversion of their warrants, which would give them a 10 per cent minority stake.

Marans would remain invested with this stake in the airline, which they acquired over four years ago, as a public shareholder although they would cease to be its promoters.

"The revival plan would include financing and operational efficiency," Singh said.

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