Update:United Breweries Holdings has picked up a 26 per cent stake and it would make an open offer to acquire a minimum of 20 per cent to all shareholders of Air Deccan at a price of Rs 155 in compliance with Sebi regulations next week UB Holdings has made an initial investment of Rs 150 crore in Deccan Aviation and a further investment of Rs 396 crore would be made by this month-end for 26 per cent stake.
With this acquisition, the Kingfisher-Air Deccan group will become the largest domestic airline with a fleet of 71 aircraft -- 41 Airbus and 30 ATR aircraft.
The combined entity will cover all segments of air travel from low to premium fares and offer maximum number of 537 daily flights covering the single largest network in India covering 69 cities, taking advantage unparalled synergy benefits from a common fleet of aircraft
(Source: ET)
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Vijay Mallya, the flamboyant and aggressive king of spirits, is believed to be buying Air Deccan, India’s leading low-cost airline, in a move that would make him the country’s biggest aviation player by marketshare. Air Deccan will retain its low-cost status while Kingfisher will run as a full-service airline. Captain GR Gopinath, CEO of Air Deccan, flatly denied any deal was in the offing with Kingfisher.
Markets have given a thums up for the deal. Deccan, operator of India's biggest low-fare airline, gained as much as 7.6 per cent and Mallya's United Breweries Holdings rose 8.5 per cent.
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