Spice will seek aviation ministry nod for Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet.
In yet another twist to Indian aviation story, beleaguered budget carrier SpiceJet announced its decision to transfer the ownership, management and control of the company to co-founder Ajay Singh from Sun Group chairman Kalanithi Maran and Kal Airways. Maran and Kal together held 53.5 percent in Spice while Singh had 4.5 percent stake.
A company press release, issued on Thursday afternoon, said: "The Board has further directed the company to take further steps to implement and undertake all necessary steps including to make the appropriate application before the Ministry of Civil Aviation, Government of India for seeking approval of the 'Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet Limited'.
In 2010, when Maran acquired SpiceJet for close to Rs 750 crore, the airline had cash reserves of more than Rs 450 crore. Subsequently, it faced mounting losses and landed in huge debt. It was severely hit by cash crunch in the last couple of months that threatened its operations. To get by, Spice reduced its Boeing plane fleet but ended up losing a considerbale market share. The Kalanithi Maran-promoted carrier was allowed to avail credit facility for landing, parking and route navigation fee from the Airports Authority of India for a limited period.
Full Faith in Ajay Singh
Kapil Kaul, CEO- South Asia, India Subcontinent, Centre for Asia-Pacific Aviation (CAPA) calls the deal lifesaving for Spicejet. "They were lucky actually, this is a blessing in disguise. It was timely." Kaul was candid enough to say that he was uncertain if this will finally get translated into an agreement. Spice would not have survived had Ajay Singh not stepped in, he told CNBC-TV18.
Reacting to the news, former director general of Civil Aviation Kanu Gohain said Ajay Singh is the co-founder of SpiceJet and is a professional who knows the business of aviation. Now that he is investing his own money, chances are high that Spice will revive start flying again. He insisted that as soon as the Ajay Singh led group takes care of the debt, even if partially, things will look up. Gohain reminded that although there is a lot of demand for air travel now, but we are entering the lean pahse starting from January or February till April when traffic is low. But that will give them ample time to set up their shop properly and manage things properly.
No Open Offer
It is likely that all the stake holders of SpiceJet will approach SEBI and ask for an exemption to talk about the open offer. Saying that SEBI's main objective is to ensure investor protection and avoid loss of value, JN Gupta, former ED with the market watchdog said if somebody is ready to bail out a company with the condition that he be allowed to dispense with the open offer, it is not a issue to worry about. "Ultimately, it is in the interest of the investor. Otherwise the company will meet the same fate as Kingfisher ," he said.
SpiceJet stock price
On January 15, 2015, SpiceJet closed at Rs 18.65, up Rs 0.55, or 3.04 percent. The 52-week high of the share was Rs 22.20 and the 52-week low was Rs 11.10.
The latest book value of the company is Rs -16.49 per share. At current value, the price-to-book value of the company was -1.13.
Anda sedang membaca artikel tentang
Ajay Singh takes over SpiceJet control from Kalanithi Maran
Dengan url
http://kebugaranhidup.blogspot.com/2015/01/ajay-singh-takes-over-spicejet-control.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Ajay Singh takes over SpiceJet control from Kalanithi Maran
namun jangan lupa untuk meletakkan link
Ajay Singh takes over SpiceJet control from Kalanithi Maran
sebagai sumbernya
0 komentar:
Posting Komentar