UB Group picks up 26 per cent in Air Deccan

31 May 2007

Mumbai: Vijay Mallya`s UB Group has acquired 26 per cent stake in Deccan Aviation Ltd for Rs550 crore. UB Holdings would also launch an open offer for another 20 per cent stake in the low-cost airline.

The transaction, which values Air Deccan at Rs155 a share, would be through allotment of 96,77,419 fully paid-up equity shares to UB, Air Deccan managing director G R Gopinath he said.

UB has paid an advance of Rs150 crore and the remaining amount would be paid in the next four weeks, he told reporters after the company`s board meeting.

UB Group, which owns premier carrier Kingfisher Airlines, would eventually control 46 per cent of Deccan Aviation that runs the low-cost carrier Air Deccan after the open offer.

This is the third M&A deal in the domestic aviation space, after Jet Airways-Air Sahara and merger of Air-India and Indian, this year.

Last year, Tata Group acquired under 10 per cent stake in another budget carrier SpiceJet.