Sun TV’s Maran again eyes major stake in SpiceJet

11 Jun 2010

Kalanidhi Maran, the promoter of private broadcaster Sun TV Network Ltd, is once again looking at picking up a stake in SpiceJet, according to reports. Maran is looking to pick up a 40-per cent stake in the no-frills airline from Wilbur L Ross and India Asset Recovery Fund (IARF).

According to a CNBC-TV18 report quoting unnamed sources, the deal is likely to be sealed in a few days. W L Ross and IARF will convert bonds in tranches to avoid having to make the otherwise mandatory open offer, and this will start in a few days' time.

On full dilution, the WL Ross and IARF stake will be at 34.9 per cent.

Foreign currency convertible bonds (FCCBs) worth $80 million were issued to W L Ross and IARF. Ross was issued bonds worth $68 million, while IARF was issued bonds worth $12 million, both at a conversion price of Rs25 per share.

Among other stakeholders, one promoter, Ajay Singh and his family, hold 10 per cent, while Goldman Sachs holds around 6 per cent. The other promoter, the Kansagra family, holds 12 per cent. However over 50 per cent of these shares are pledged. The Tata Group is another major shareholder, with a 6 per cent stake.

According to other reports, Maran is close to signing an agreement to purchase a nearly 40 per cent stake in India's second largest low-fare carrier SpiceJet Ltd from its promoter Bhupendra (Bhulo) Kansagra and distressed-assets buyout specialist Wilbur L Ross for around Rs800 crore.