Ajay Singh struck SpiceJet deal at a throwaway price of around Rs 200 cr


Sources with direct knowledge indicate that Ajay Singh has struck the deal to buy Maran's 58% stake in SpiceJet at a throwaway price of around Rs 200 crores. The valuation worked out to save SpiceJet is at a price much lower than even half the market cap of SpiceJet at the time of deal announcement. Based on this valuation, Ajay Singh is expected to present the case as a distress deal to market regulator Sebi, asking for an exemption from making an open offer for SpiceJet's shareholders. 
According to the then market cap, SpiceJet's 58% stake should have been valued at Rs 580 crores a source indicated. "A heavily discounted valuation is not too surprising considering the mess surrounding the airline" an expert indicated. Sources also suggest that while Sebi will take a final decision on the waiver of open offer, Ajay Singh's case is strong since the airline needs funds and an open offer will be an unnecessary expense for the new promoter. Experts also point out that if the deal is done at a discounted rate, it will be difficult to ascertain the open offer price. 

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