Home Economy Wilbur Ross to infuse $100 mn in Spicejet

Wilbur Ross to infuse $100 mn in Spicejet


Mumbai/Delhi : Global private equity firm and leveraged buyout specialist WL Ross and Co. LLC will infuse $100 million (Rs.4.2 billion) in Indian low-cost carrier SpiceJet Ltd, a Spicejet statement said Monday.

In a regulatory statement, Spicejet Ltd has informed the Indian equities market, the Bombay Stock Exchange (BSE), that the company, its shareholders Royal Holding Services Ltd., Istithmar and Ajay Singh and Goldman Sachs, in its capacity as a bondholder of the company, have entered into definitive agreements Monday with WL Ross & Co. LLC for an infusion of approximately $100 million in Spicejet for its business requirements.

Furthermore, Goldman Sachs has agreed to subscribe to equity warrants of the company under the preferential issue guidelines of SEBI subject to receipt of requisite approvals, the statement added.

Earlier in July, Wilbur Ross had said it will invest $80 million (Rs.3.2 billion) in SpiceJet.

The investment amount announced Monday includes the $20 million that Goldman Sachs will pay while subscribing to equity warrants of the company, a Spicejet official said in Delhi requesting anonymity.

More details about the investment, however, have not been disclosed so far, the official said.

Meanwhile, according to a media report, London- based billionaire Lakshmi Mittal who controls ArcelorMittal, the world’s largest steel company, has evinced interest in buying a controlling stake in the airline.

The report said, “Wilbur Ross, the US investor who is known for turning around bankrupt companies, who is close to Mittal and even on the ArcelorMittal board, wants to rework the terms of his investment in SpiceJet.”

On the other hand, Indian liquor baron Vijay Mallya has again shown interest in the no-frills carrier to lift his own airline Kingfisher’s market share above that of arch rival Jet Airways.

During the day, shares of SpiceJet rose by 9.5 percent after reaching a high of Rs.31.40. Currently they are trading at Rs.30.40.