SpiceJet: Kalanithi Maran out, Ajay Singh checks in to lead revival

New Delhi: Cash-strapped SpiceJet returned to original promoter Ajay Singh for its revival as the current owner, the crisis-hit Maran family agreed to cede control with transfer of its entire 53 per cent equity stake worth about Rs 500 crore in the struggling airline.             

Sun Group of Maran family would also infuse Rs 80 crore  in the airline, which has been battling for survival for months, after conversion of their 10 per cent warrants. Shares of the SpiceJet gained three per cent to close at   Rs 18.65 on the BSE while its value was around Rs 1,000 crore. Ending weeks of uncertainty over fresh capital infusion into it, SpiceJet said Kalanithi Maran and Kal Airways would transfer their entire ownership as well as management and control to Ajay Singh, the original founder.

The proposal of Maran and Kal Airways is part of 'Scheme of Reconstruction and Revival for the takeover of ownership, management and control of SpiceJet'.     Approved by SpiceJet board today, the scheme would be submitted to the Civil Aviation Ministry for its nod.

The carrier has been tough times and had to even cancel flights. Based on current share price, the deal would involve transfer of shares estimated to be worth about Rs 500 crore at  the market value as the entire holding of over 53 per cent would be transferred to Singh. Sun Group CFO S L Narayanan said the group would transfer the entire equity stake of over 53 per cent to Singh, but would remain an investor with holding of warrants (convertible into 10 per cent stake) in the carrier.

Narayanan did not immediately offer any comment on possible open offer obligations for the deal. In case open offer is triggered under Sebi norms, then   the new investors would have to acquire additional 26 per cent  stake, worth about Rs 250 crore, from public shareholders.             

However, there was no clarity on whether open offer would be triggered. Post the deal, Maran and Kal Airways would no more beclassified as promoters and that status would be transferred to the new investor. SpiceJet COO Sanjiv Kapoor said the latest move is a positive development while adding that some more steps need to be followed. He also indicated that some leasing related  contracts could be re-negotiated under the new ownership.             

The Maran family has been in troubles as the names of some family members have figured in 2G scam and other cases