SpiceJet Revival: Ajay Singh Says More Investors to Join In
Stating that the road ahead for SpiceJet was "pretty tough", its original founder and new owner Ajay Singh on Thursday said he was in talks with more than one investor for fund infusion into the carrier.
Press Trust of India | Last Updated: January 16, 2015 00:05 (IST)
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New Delhi: Stating that the road ahead for SpiceJet was "pretty tough", its original founder and new owner Ajay Singh on Thursday said he was in talks with more than one investor for fund infusion into the carrier.
Mr Singh, to whom current promoters - the Maran family - have agreed to transfer their entire stake of over 53 per cent as part of a revival plan, said turnaround for the airline could happen in 2-3 quarters.
"SpiceJet is in a tough position and the road ahead is pretty tough but I think the road is worth travelling on," Mr Singh told television channels.
Responding to a question on whether an open offer would be made under Securities and Exchange Board of India (Sebi) norms for acquiring stake in SpiceJet, Mr Singh said he would make an offer if the market regulator asks for it.
If the open offer norms are triggered, then the new investors would have to buy additional 26 per cent stake in SpiceJet from public shareholders.
Mr Singh said that making an open offer would depend on legal advice as lawyers are currently looking into those aspects.
"I think if oil prices remain where they are and there is growth in the economy, it should not take more than two or three quarters to turnaround this airline," he said.
According to Mr Singh, conversations are on with investors who are in the process of looking at the transaction and independently doing diligence.
"We are confident that we will find the investors and ensure that SpiceJet survives."
Story first published on: January 15, 2015 20:41 (IST)