Deccan Aviation 0ffers 26 per cent equity to UB Group

Bangalore, May 31 (UNI) Putting at rest the suspense over Kingfisher Airline acquiring low cost carrier Air Deccan, The Deccan Aviation today approved a preferential allotment of over 35 million equity shares to the UB Group at Rs 155 per share to net an additional investment of Rs 550 crore.

The Board of Deccan Aviation, the parent company of low cost carrier Air Deccan which met here this evening, approved the allotment making the UB Group the single largest equity holder of the company.

Air Deccan had mandated Edelweiss to raise additional capital/funds six months ago to fuel the airline's growth plans.

Air Deccan Managing Director Capt G R Gopinath talking to newsmen after the board meeting said "UB was preferred over other interested investors, due to the inherent synergies existing in Air Deccan and UB owned Kingfisher Airlines".

He said Air Deccan would continue to operate as an independent airline with increased focus on the low cost business model. "With commonality of fleet, we foresee sharing of infrastructure, resources and best practices between both the airlines".

He said the move would definitely lead to decreased costs, maximising shareholder value, increased efficiencies and improved profitability.

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