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US based distress fund may buy stake in SpiceJet

Wilbur Ross, a US-based distress fund may invest in SpiceJet, reports Business Standard.

Last week, a media report stated that Kingfisher Airline is in negotiations with two majority shareholders of SpiceJet to buy the low-cost airline in all cash deals. Kingfisher is negotiating with Gulf based fund Istithmar and UK based Kansagra family. Together they hold 26.3% in SpiceJet; acquisition of more than 20% would lead to an open offer as per SEBI rules.

If Kingfisher acquires the airliner it will hold more than 40% market share in SpiceJet and be able to control the pricing on key routes. SpiceJet is looking to raise USD 100 million from the markets. (My Iris)

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