Indigo In Talks With SpiceJet Over Stocks Buy-Out (Timeline Media Files)
Indigo airlines in talks to buy SpiceJet. Indigo’s co-founder Rakesh Gangwal is said to be at an advanced level of talks with SpiceJet on buying the airline stocks. The reports have raised the share prices of both the airlines – Spice jet shares by 18 percent and IndiGo shares by 0.9 percent high. It could be a sizeable portion of stocks, reported the Business Today.
As of June end, Mr. Gangwal and Shobha Gangwal, holds a stake of 13.23 percent and 2.99 percent in the InterGlobe Aviation which does business as Indigo, while their family trust, Chinkerpoo Family Trust has a stake of 13.5 percent, the exchange data says.
SpiceJet has recently been trying to raise funds and restore its operations for a fourth of its fleet which is ‘struggling to stay afloat,’ reported Bt. Amidst the fierce competition ensuing in the sector, its fleet has been grounded. The airline’s market share went low to 4.4 percent during the last of September from a 7.3 percent during the last of January. SpiceJet has not responded to any query regarding the deal, reported the Bt.
