NDTV

Mumbai, Jul 15: SpiceJet said on Tuesday that the US investor Wilbur Ross has bought a stake in the airlines for Rs 345 crore. The airlines also said that the deal would not trigger an open offer.

The promoters of SpiceJet would not sell any stake in the company, SpiceJet said, adding that the deal would be finalised over next 10-14 days.

There is enough headroom for other FIIs to buy a stake in the airline via markets, it said.

Ross said that it believes in the low-cost airline model in India and is delighted to add to SpiceJet’s growth and development.

Vijay Mallya, chairman of Kingfisher Airlines, said the airline is still in talks with SpiceJet for buying a stake, adding that the deal would be a share-swap deal, not a cash deal. We have made an offer for SpiceJet, said Mallya, but the price quoted is too high.

The shares of SpiceJet had moved up by 7.51 per cent to Rs 30.05 in the morning trade on the Bombay Stock Exchange.

Spicejet has been making losses and is expected to end this fiscal deep in the red. The company is also facing a severe cash crunch and owes crores to the airports it operates from. Recently, its executive chairman, Siddhantha Sharma, had resigned from the company.