SpiceJet denies move to offload stake

  • PTI, New Delhi
  • |
  • Updated: Jun 18, 2007 20:32 IST

Low-cost carrier SpiceJet, which is being eyed by other airlines including Vijay Mallya's Kingfisher, on Monday denied any move to offload stake and said it has adequate resources to fund its expansion plans.

"SpiceJet would like to reiterate there is absolutely no plan to sell any stake in the company to anybody. It is one of the best funded airlines in the country with a large cash reserve to fund its expansion," an airline spokesperson said in a statement.

Terming reports of a stake sale as "speculative", the company said it currently had no plans to raise any money. It has ordered for ten Boeing 737-800 worth 700 million dollars which indicated its coffers were strong, the company said.

"SpiceJet in January raised 67 million dollars through a preferential allotment and these shares have a lock-in period of 12 months. Our stakeholders are long-term investors and have strongly dismissed speculation of any stake sale," the company added.

The denial comes amid reports that Paramount Airways and Vijay Mallya, who acquired controlling stake in Air Deccan last month, was interested in SpiceJet as well.

"I am interested in SpiceJet, but I am not a predator," Mallya had said last week.


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