Istithmar World Capital sells 13.4% in SpiceJet
SpiceJet reportedly announced Istithmar World Capital, a Dubai World Group subsidiary, sold its entire 13.4% stake in the Indian carrier, raising approximately INR1.69 billion (USD35.23 million), as part of Dubai World’s strategy to reduce its debt (Press Trust of India, 06-Feb-2010). SpiceJet Director, Ajay Singh, reportedly stated block deals for the stake was sold at INR52.12 per share (Reuters, 07-Feb-2010). A group of seven investors, including DWS Invest BRIC Plus (8.85 million shares), Reliance Mutual Fund (4.5 million shares) and Birla Sun Life Mutual Fund (10 million shares) reportedly acquired the stake (Bloomberg, 05-Feb-2010). Bank of America Merril Lynch acted as arrangers for the sale. Mr Singh reportedly added Istithmar still holds USD12 million in foreign currency convertible bonds in the carrier (Press Trust of India, 05-Feb-2010).
SpiceJet: “Two-thirds of the 24.1-million shares that have been traded were bought by domestic investors and the remaining shares were bought by a foreign institutional investor,” Sanjay Aggarwal, CEO. Source: The Economic Times, 06-Feb-2010.