Sun TV promoter increases offer for SpiceJet

Sun TV Network promoter, Kalanidhi Maran, is reportedly negotiating for a 44% stake in SpiceJet (India Express, 11-Jun-2010). Mr Maran has reportedly increased his offer price from INR39 to INR43 (compared with a close price on BSE on 10-Jun-2010 of INR57.85). Ernst & Young is advising Mr Maran. The agreement will likely occur in three tranches, with Mr Maran first acquiring a 13% stake from the Kansagra family and almost 10% from Wilbur Ross, followed by the acquisition of 21% from Mr Ross in two tranches. The transaction is likely to be announced by the end of Jun-2010. If the agreement proceeds, Mr Maran would be required to make an open offer for a further 20% stake in the LCC, which, if fully subscribed, would increase his stake to 64%, with Mr Maran to appoint a new CEO if he gains majority ownership.