Kingfisher offers Rs 155 per share to Deccan shareholders

New Delhi, June 20 (UNI) Kingfisher Airlines today made a public announcement to the shareholders of Deccan Aviation Ltd to acquire upto 27,094,024 fully paid equity shares of Rs 10 each, representing in the aggregate 20 per cent of the post issue voting capital at a price of Rs 155 per share.

Last month, Kingfisher acquired 26 per cent stake in no-frills Air Deccan for Rs 550 crore.

The offer opens on July 25, 2007 and will close on August 13, 2007.

Edelweiss Capital Ltd are the manager to the offer on behalf of Kingfisher Radio Ltd, a wholly owned subsidiary of United Breweries (Holdings) Ltd.

United Breweries (Holdings) Ltd, its 100 per cent subsidiary, UB Overseas Ltd are also named as the acquirers in the statement.

The announcement to the shareholders of Deccan is made pursuant to Regulations 10 and 12 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.

Late last week, Kingfisher Airlines's chairman Vijay Mallya said he will be interested in buying out a stake in another low-cost airline SpiceJet.

There is also speculation that Chennai-based Paramount Airways may pick up 26 per cent stake in SpiceJet for Rs 500 crore to 600 crore.

The trend is part of consolidation taking place in the Indian aviation industry with Jet Airways' total buyout of Air Sahara and merger of government-owned Air India and Indian (Airlines) in recent months.

UNI