Debt-ridden Kingfisher Airlines (KFA) revealed on Wednesday that it is in talks with foreign airlines for selling an equity stake, sending its stock price soaring on the Bombay Stock Exchange.
“We are in talks with some foreign airlines and investors for investing in our airlines. We are going as fast as possible,” Kingfisher chairman Vijay Mallya told reporters ahead of the company’s 17th annual general meeting here.
“We can’t go faster, as it is only 10 days ago the government announced the FDI (foreign direct investment) policy in the civil aviation sector,” he added. Mallya did not provide details citing “privacy and confidentiality” reasons.
The carrier is also holding talks with the consortium of banks on settling the cumulative debt (about Rs. 8,000 crore) that it owes them. The next meeting is scheduled Thursday in Mumbai.
Shares of Kingfisher Airlines surged about 9% after Mallya’s comments.
The stock gained about 10% during the day, before finally settling at Rs. 15.7, up 8.7%, on the BSE. Shares of other companies of the group also surged.
Diageo and UB Group had on Tuesday said they are in talks for a deal under which the UK-based drinks major may pick up stake in the latter's United Spirits.
SpiceJet spikes reports about stake sale
Budget airlines Spicejet promoted by media baron Kalanithi Maran on Wednesday said it was not in talks with foreign airlines on offering its stake. “We have not had any formal talks with any airlines. We are not desperate to raise money,” CEO Neil Mills said after the company’s AGM here. He said the airline would consider diluting its stake if it “makes economic sense to shareholders and the company”.
(With inputs from IANS, PTI)