Kingfisher resumes talks with investors on GDR
06 Jun 2011
With jet fuel prices beginning to fall, Kingfisher Airlines has resumed talks with investors for issuing global depository receipts (GDR) to raise around $300 million, company chief Vijay Mallya said today.
He said Kingfisher had to postpone the GDR issue as fuel prices were going sky high. He added that when it was proposed, it was on the basis of the fuel prices remaining steady at $90 per barrel, however, the prices had since shot up to $120.
Tt had, therefore, to be postponed and, with fuel prices easing, investors started engaging the company.
As per plans, the carrier was to come out with a GDR issue in December last year to reduce its debt, but had failed to do so due to the slump in its stock prices.
Mallya, who is in Singapore to attend the annual general meeting of the International Air Transport Association (IATA), also said that his carrier would join the 'oneworld' alliance of airlines in February next year.
Malaysian Airlines today joined as a full-fledged member of the alliance.