Malvinder offers 'no comment' on SpiceJet buy

Malvinder Mohan Singh, former chairman of Religare Enterprises Ltd, today declined to comment on media reports about Religare buying a stake in SpiceJet.

“According to our company policy, we do not comment on market speculation,” Malvinder Mohan Singh said at a press conference.

Sources in the know, however, confirmed that Religare was in talks with SpiceJet. According to them, Religare’s aviation arm, Religare Voyages, is in talks with SpiceJet for a stake in the low-cost carrier and it makes sense, as they already have an aviation arm. But they could not confirm on the status of the deal.

There were reports that SpiceJet promoters and Religare Voyages were in the final lap of talks and the deal price could be in the range of Rs 70-75 a share.

SpiceJet declined to comment, saying, “We do not comment on market speculation.”

Sun TV promoter Kalanithi Maran, through his advisors, is also interested in buying a 51 per cent stake in SpiceJet and is talking to hedge fund Wilbur L Ross to buy its entire 30 per cent stake in the low-cost carrier.

Maran’s representatives had offered to buy a 51 per cent equity in the carrier, provided the hedge fund could rope in other shareholders into a consortium and create a block offering majority equity in the company, said senior executives involved with the deal.

The price, they initially offered, is Rs 39 a share, a 31 per cent discount to the current market price of Rs 58. This would value the company at Rs 950 crore.

Shares of the low-cost airline jumped over 7 per cent on the Bombay Stock Exchange, amid media reports on the stake sale.