US billionaire invests Rs 345 crores in SpiceJet
By ranjanp at 15 July, 2008, 12:38 am
U.S. billionaire investor Wilbur Ross, who made his fortune taking over bankrupt steel, coal and textile companies, will invest 345 crore rupees ($80 million) in SpiceJet Ltd., his first investment in an Indian airline. WL Ross & Co. will make the investment and Ross will join SpiceJet’s board, according to a statement by India’s second- largest budget airline.
India’s airlines are seeking investments as record fuel prices drain funds needed to pay for new planes. Combined losses for Indian carriers may double to 6420 crore rupees ($1.5 billion ) this year because of rising fuel prices, according to the Centre for Asia Pacific Aviation.
“We are delighted to have WL Ross as an investor in SpiceJet. WL Ross is one of the largest and the most experienced investor in the world. With this investment, we have no doubt that SpiceJet will fulfill its promise of emerging as India’s leading airline,” SpiceJet board member Bhulo Kansagra said.
Mr Ross in-turn reaffirmed faith in the Indian domestic lowcost airline industry saying that the rising fuel costs will pass. SpiceJet has previously rejected a takeover offer by Vijay Mallya, founder of Kingfisher Airlines.
SpiceJet’s shares surged as much as 16 percent after the deal was announced. It changed hands at 30.25 rupees, or 8.2 percent higher than yesterday’s close, at 10:14 a.m. in Mumbai.
Sphere: Related Content
