By IANS
Bangalore : Business tycoon Vijay Mallya Thursday picked up 26 percent equity stake in Air Deccan, India's first low-cost carrier, for Rs.5.5 billion at Rs.155 per share through his holding firm United Breweries (Holdings) Ltd, which operates Kingfisher Airlines.
In a notification to the stock exchanges, Deccan Aviation Ltd, which operates Air Deccan, said its board had in principle approved the preferential allotment of over 352 million shares to the UB group.
"We had mandated Edelweiss to raise additional capital/funds six months ago to fuel the airline's growth plans," the notification said.
Air Deccan managing director Captain G.R. Gopinath told the media later Mallya's offer was preferred over other investors due to the inherent synergies existing in Air Deccan and UB-owned Kingfisher Airlines.
"Air Deccan will continue to operate as an independent airline with increased focus on the low-cost business model. With commonality of fleet, we foresee sharing of infrastructure, resources and best practices between both the airlines," Gopinath said.