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.
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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.
