The UK-based promoter-director Bhulo (Bhupendra) Kansagra of Delhi-based low-cost carrier SpiceJet is willing to divest the family stake in the airline if the valuations are right.
The Kansagra family owns 12.91 per cent in the airline, which is publicly listed, and has a 10 per cent share in the Indian market, and a market capitalisation of $250 million. However, the company has been asking for a steep premium valuing the company at $600 million to $700 million.
The SpiceJet stock started attracting attention a few weeks ago following a major spurt in trading volumes, which raised speculation of a promoter sell-out.
Speaking to Business Standard from London, Kansagra said, "I am aware of media reports in India that SpiceJet is being wooed by several private domestic airlines but no one has come to me with a concrete offer."
"Everyone has flirted with the airline but no one has gone down on his knees to ask for a hand in marriage. The day they come to me with something that can be discussed and signed across the table, we are open to it," he added.
Last month, Jet Airways' Executive Director Saroj K Datta had spoken of the synergy between the airline's low-cost carrier JetLite and SpiceJet in an interview to Business Standard.
Responding to Datta's statement, Kansagra said: "Currently they have not made any offer directly to me."
The Kansagra brothers bought a stake in SpiceJet in 2000 from the Modi family, which was operating the carrier as ModiLuft at the time.
On the airline's quest for a fresh equity infusion to finance its expansion and reduce losses, Kansagra said there have been efforts to get into a strategic alliance with financial investors but no deal had been signed.
"We are comforted because of the backing of our investors like Goldman Sachs (on the board of directors) and Dubai-based investor Istithmar (which holds 13.42 per cent). But we are looking for more strategic investors for expanding the airline," he added
The airline had been trying to get hedge funds like Texas Pacific Group to invest in it for two years now, but no commitment was made. TPG had said it wanted to invest in the Indian aviation market but would wait and watch for another phase of consolidation.
Commenting on the Tata group's interest in acquiring a larger strategic stake in the airline after it bought approximately 6 per cent in 2006 for $17.2 million (through Ewart Investments), Kansagra said, "I would not be able to comment on it as the Tatas have refrained from a strategic investment in the airline so far."
