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SpiceJet to launch a rights issue in Sep/Oct-2010

21-Jul-2010 11:00 AM

SpiceJet announced plans to launch a rights issue in Sep-2010 or Oct-2010, following the closure of an open offer to public shareholders by major shareholder Sun TV Network Chairman and MD, Kalanithi Maran, on 25-Aug-2010 (DNA, 21-Jul-2010). Mr Maran is seeking to acquire a further 20% of stock in the airline, commencing 06-Aug-2010. The size of the rights issue was not disclosed. The funds would aid the acquisition of aircraft and launch of international services. On 14-Jun-2010, Mr Maran entered an agreement to acquire 37.73% of the LCC's shares – 30.23% from Wilbur Ross and 7.49% from the Kansagara family – for an estimated USD160 million or INR47.25 per share. Mr Maran and Kal Airways Pvt Ltd subsequently launched an open cash offer for the acquisition of 83 million equity shares or a 20% stake in SpiceJet at INR57.76 per share, a 3% premium to the stock's 11-Jun-2010 closing price of INR56.05.