Promoters and investors in SpiceJet, could be inclined to sell stake in case of an offer at a higher valuation of over Rs 1,000 crore from prospective buyers, possibly Anil Ambani-led Reliance ADAG or Jet Airways.
While officials concerned remained tight-lipped, sources in the know of the deal gave enough indication that talks were on with Reliance ADAG and Naresh Goyal-led Jet Airways.
The reports about a possible deal pushed up SpiceJet shares by over 14% during the day to close at Rs 35.95 raising the company's value at current stock price to Rs 865.14 crore.
The appreciation in the company's share prices comes on a day when industry leaders like Jet and Deccan (now owned by Vijay Mallaya promoted Kingfisher Airlines) lost up to three percent in a weak market.
Sources said as the airline is doing well and is on an expansion mode, different people have been approaching it with various proposals to buy out some promoters and investors.
While Rs 755 crore may not be the right price, but if the valuation goes up to Rs 1,000 crore and beyond, the investors or even promoters could be interested in exiting the airline, the sources added.
When contacted Ajay Singh, Director, SpiceJet, did not take any query on the issue, including whether he has also been approached by any prospective buyers.
In the meantime, Spicejet in a communication to stock exchanges said, "the company has till date not received any formal communication from any party" on reports that 'Anil Ambani is in race to buy out SpiceJet'.
Anil Ambani group eyeing SpiceJet
Mumbai: Anil Dhirubhai Ambani group (ADAG) has begun talks to buy low-cost carrier SpiceJet, the Mint daily reported on Friday, without attributing any source.
Kingfisher Airlines and Jet Airways are also in the race to buy SpiceJet, which is looking to raise funds, the newspaper said.
The diversified ADAG controls India's No. 2 mobile operator Reliance Communications, which is in talks with South Africa's MTN in a bid to create a global top-10 telecom firm.
"I am not meeting anybody and not thinking about diluting my stake," the Mint quoted SpiceJet's founder Bhupendra Kansagra as saying. "But who would not want to exit, if he is getting a right price for his stake." Officials at ADAG and SpiceJet could not be immediately reached.
The Tata group owns 6% and Dubai government investment agency Istithmar owns 13.4% of SpiceJet.
The Indian airline industry, estimated to have made losses of at least $1 billion in FY08, has resorted to stake sale and raised debt to stay afloat.
Last year Jet Airways bought unlisted rival Sahara Airlines and UB group, which runs Kingfisher Airlines, bought a controlling stake in Deccan Aviation. (-Reuters)
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