Sebi nod for SpiceJet offer

SpiceJet has received approval for its open offer, even as television channels reported that some minority shareholders of the airline had moved the Securities and Exchange board of India (Sebi), opposing its stake sale to Sun TV promoter Kalanithi Maran.

"We have received the Sebi nod for the open offer, which is set to open on November 18. The open offer is for 20 per cent stake in the airline," said a top SpiceJet executive on condition of anonymity.

There were also reports that a few associates of SpiceJet promoter Bhupendra Kansagra, who has agreed to sell his stake in the carrier to Maran, have moved US courts to stall the transaction. SpiceJet denied any such move. It said the deal was through and Maran would hold majority stake in the airline by mid-November and the rest would be done through the open offer.

"As per the US law, minority shareholders have to follow the line majority shareholders follow and can't object it. There is no basis in the fact that minority shareholders can stop the deal," said the executive.

Kansagra held shares in SpiceJet through Royal Holdings Services, a US company where he owns 85 per cent while the balance is held by two other investors.

Maran, through KAL Airways, had announced he would acquire 37.75 per cent in SpiceJet from US investor Wilber Ross and Kansagra for Rs 750 crore (Rs 7.5 billion) at Rs 47.25 per share. Maran had also announced to make an open offer for an additional 20 per cent.