Wednesday, January 31, 2007

Istithmar looking to increase stake in India's SpiceJet

Dubai: Dubai World investment firm Istithmar is set to increase its stake in Indian low-cost airline SpiceJet.
Istithmar chief executive officer David Jackson told Gulf News a decision on the matter will be taken in a couple of days.
"We are in the process of making an additional investment," he said, but declined to disclose the amount.
A board meeting tomorrow is expected to approve the new investment. Istithmar has invested $50 million in SpiceJet, which was launched in May 2005.
Spicejet had informed the Bombay Stock Exchange recently that it would offer equity shares on preferential basis to various foreign and domestic investors. Istithmar is banking on the huge growth potential of SpiceJet as the Indian government is opening up the aviation sector to low-cost carriers and air travel is growing amid a strong economic growth.
31/01/07 Shakir Husain/Gulf News, United Arab Emirates