SpiceJet shares up reports of stake sale
22 Aug 2011
Mumbai: Shares in budget carrier SpiceJet jumped nearly 5 per cent after reports emerged that private equity firm, TPG Capital, may be negotiating a minority stake in the company. Reports warned, however, that negotiations may not necessarily conclude in a deal.
Both the airline and TPG declined to comment on the reports.
SpiceJet, controlled by Kalanithi Maran, who also owns media firm Sun TV, had in June said it planned to raise $270 million from Canada's export finance agency Export Development Canada (EDC) for aircraft purchases.
The finance would have aided SpiceJet'a proposed purchase of 30 Nextgen turboprop aircraft from Bombardier for about $915 million.
Maran, along with his politician brother Dayanidhi, has become increasingly embroiled in a series of scams that have brought his business ventures into sharp focus, both from the media and investigative agencies.
The political fortunes of the family have also plummeted with their party, the DMK, being routed in state-level elections earlier this year.
