New Delhi, June 14 (IANS) After signing a deal to acquire 37.73-percent stake in budget carrier SpiceJet, Sun TV Network promoter Kalanithi Maran Monday made the mandatory open offer to buy another 20 percent from the public at Rs.57.76 per share.
The offer has been made by Kal Airways, promoted by Maran and his wife Kareri, based on the two-week average daily high and low price of SpiceJet equity shares on the Bombay Stock Exchange (BSE), where it is listed, the managers to the issue said.
Some interesting facts also emerged from the open offer made Monday:
– Kalanidhi Maran’s net worth was Rs.13,384 crore ($2.97 billion) as on June 10
– The new promoters propose to change the name of SpiceJet after acquisition and shift its registered office away from Gurgaon
– They have, however, undertaken not to sell any substantial asset of the airline
– SpiceJet was previously called Genius Leasing, M.G. Express, Modiluft and Royal Airways
– The airline has now been given permission overseas to Bangladesh, the Maldives and Nepal.
Commenting on the deal, Jagannadham Thunuguntla, equities head at leading brokerage SMC Capitals, said SpiceJet was among few airlines in India and globally which was running profitably.
‘In the future if the government relaxes foreign investment norms for airlines, then SpiceJet can become a target for acquisition for a foreign carrier, netting the promoters a handsome premium,’ Thunuguntla told IANS.
He said apart from the profits, which amounted to Rs.61.44 crore in the year ended March 31, the carrier can also fly abroad. In this regard, the Sun Network brand can capitalise on the large south Indian Indian diaspora in east Asia.
Maran’s SUN TV Network boasts 20 channels that reach 95 million households in India. It also beams to 27 overseas destinations with large south Indian diaspora including the US, Canada, Europe, Singapore, Malaysia, Sri Lanka, South Africa, Australia and New Zealand.
This apart, in its quest to be called a complete media and entertainment company, it runs 45 FM radio stations, two daily newspapers with a circulation of 1.2 million, four magazines and a direct-to-home satellite TV service with 5.5 million subscribers.
Its cinema arm makes at least eight movies every year, several of them with one of the biggest budgets for Indian films.