SpiceJet shares up on Kingfisher share: swap report
The expected share swap will result in SpiceJet shareholders getting one share of the merged entity for every three SpiceJet shares held, the paper said quoting sources.Updated: Jul 04, 2008 12:30 IST
Shares of SpiceJet Ltd rose as much as 14 per cent on Friday after the Business Standard reported that unlisted Kingfisher Airlines was close to sealing a share-swap deal with the discount carrier.
The expected share swap will result in SpiceJet shareholders getting one share of the merged entity for every three SpiceJet shares held, the paper said quoting sources.
A company official, who did not wish to be identified, told Reuters it was too premature to comment on the share-swap report but said "there was a proposal for consolidation."
"SpiceJet is in talks with interested parties and has appointed a merchant banker to explore various options for fresh investments in the company."
"SpiceJet is also looking at a private-equity fund for direct investment in the company," the source added.
SpiceJet has been in the news following reports that India's Anil Dhirubhai Ambani Group and South-India based airline Paramount Airways were interested in acquiring the airline, in which Tata Group has a minority interest.
Shares of SpiceJet were up 7.97 per cent at 24.70 rupees, after touching a day's high of 26.85 rupees.