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| Edited By: Praveena Sharma |Source: DNA |Updated: Mar 17, 2018, 03:03 AM IST
Budget airline SpiceJet Ltd, which is scouting for investors to raise $50-75 million for expansion, is in talks with media baron Kalanithi Maran to offload stake, two persons familiar with the development said.
Company sources who did not want to be named said the promoter of Sun Network, South India’s biggest broadcaster, is considering investing close to $100 million in the New Delhi-based airline.
Edelweiss Capital is advising Maran on the deal, sources said.
“The talks (between SpiceJet and Maran) began last week. Kalanithi is looking at picking up stake in the airline and may buy the stake sold by Istithmar to mutual funds and financial institutions. Another option being looked at is the issue of fresh equity. The contours of the deal have not yet been finalised,” said one of the source.
In the first week of February, the beleaguered Dubai government’s private equity arm Istithmar sold off its 13.4% stake in SpiceJet.
Sanjay Aggarwal, chief executive officer of SpiceJet, could not be contacted for a comment.
But the airline’s spokesperson said; “We do not comment on speculations and rumours.”
Maran has been eyeing the aviation space for some time now. Few months back, there were speculations the company was looking at acquiring the yet-to-be-launched Star Aviation, which is promoted by Dubai-based real estate ETA Star Group. However, deal did not take off and Star Aviation has yet to launch its operation.
S Natrajhen, chief financial officer of Sun TV Network Ltd denied that his company was looking at picking up stake in the low cost airline.
“There is no truth in it. There is nothing concrete happening. At least, I am not aware of it,” he told DNA Money.
A senior executive of a airline said since SpiceJet is in the market to raise funds, they may have approached Maran, who is keen on entering the aviation sector.
“Maran did look at Star Aviation but for some reason the deal did not materialise. SpiceJet is a company owned by investors; its promoters (London-based Kansagras) do not have major stake and so it’s very easy to pick up stake in it,” he said.
