Tuesday, December 12, 2006

SpiceJet gets investment proposals worth $118.5 mln

Mumbai/New Delhi: Budget airline SpiceJet Ltd. plans to offer equity up to $80 million to 4-5 investors, a source close to the deal said on Tuesday.
Earlier in the day the company said its board had decided to issue equity shares on preferential basis to investors after they offered to invest about $118.5 million in SpiceJet.
Spicejet's share price extended gains to jump as high as 6.7 percent to 61.90.
Potential investors include Tata Group firms, Texas Pacific Group Ventures, Istithmar PJSC and Goldman Sachs, SpiceJet said.
Tata Group would take the stake through Tata Investments Corp. Ltd and Ewart Investments Ltd, two separate sources told Reuters.
Dubai-based Istithmar, which now holds 10 percent of SpiceJet, would raise its stake to 25 percent, the sources said.
Spicejet has already raised money twice -- through a $80 million overseas convertible bond issue and a $12.5 million stake sale to Istithmar -- since it began operations in May 2005.
12/12/06 Reuters India