King of good times Vijay Mallaya has acquired 26 per cent stake in India''s first low cost carrier Deccan Aviation at Rs 550 crore.UB Group has paid an advance of Rs 150 crore and the balance will be paid in next four months. The Group has offered to pay at Rs 155 per share for a total of 3.5 million shares.
The 26 per cent stake has been offered through allotment of new preference shares. None of the promoters has sold their shares, said Captain GR Gopinath, MD, Air Deccan.The Deccan Aviation Board has approved Air Deccan to allow UB Group to invest 26 per cent in the low cost airline.
In the interest of the long-term view, the synergy with Kingfisher will make enormous benefit for the company, said Captain Gopinath.We will continue to be the low cost business model. We will continue to operate as an independent entity, added Gopinath.
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