Spicejet surges over 3 pc on stake sale report

Low-cost airline Spicejet's share today surged as much as 3 per cent on the BSE amid media reports that Sun TV Network's Chief Executive Officer Kalanithi Maran is close to acquiring a 40 per cent stake in the company.

Low-cost airline Spicejet's share today surged as much as 3 per cent on the BSE amid media reports that Sun TV Network's Chief Executive Officer Kalanithi Maran is close to acquiring a 40 per cent stake in the company.

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Spicejet soared 3.11 per cent to a high of Rs 59.65 on the Bombay Stock Exchange.

According to media reports, Kalanithi Maran is close to signing an agreement to purchase a nearly 40 per cent stake in low-fare carrier from its promoters Bhupendra (Bhulo) Kansagra and Wilbur L Ross for around Rs 800 crore.

As a first step, Ross will convert his foreign currency convertible bonds (FCCBs) into equity shares and will own 27.11 per cent stake in the low-cost airline, media reports added.

Further, Maran, will also make an open offer to SpiceJet's minority shareholders to acquire an additional 20 per cent stake in SpiceJet, reports said.

As per March quarter shareholding pattern available on the BSE, Kansagra owns 11.95 per cent in the company through Royal Holding Services Ltd.

Earlier this week, foreign fund house Goldman Sachs Investment Partners Mauritius had picked up 6 per cent stake in SpiceJet by converting the 1.5 crore warrants it had purchased from the airline in December 2008 into equity.

Sun TV share was trading at Rs 420.95 on the BSE, up 1.25 per cent from the previous close at 1037 hrs.