Bangalore, Jan. 31

The board of directors of Kingfisher Airlines Ltd and Deccan Aviation Ltd has decided to allot shareholders of Kingfisher Airlines three shares in Deccan Aviation for every seven shares held in Kingfisher.

The share exchange ratio recommended by KPMG and Dalal & Shah was approved at a board meeting of both the airlines on Thursday. The board also formally approved the demerger of scheduled airline business of Kingfisher Airlines Ltd into Deccan Aviation Ltd.

The residual entity in Kingfisher Airlines will retain the ground handling and training business. The demerger will be effective from April 1, subject to all statutory compliances. The combined airline company will be named ‘Kingfisher Airlines Ltd.’

The board also considered sale of the charter business of Deccan Aviation into a separate entity to be jointly owned by Captain G.R. Gopinath and the UB Group. The sale consideration is based on valuation carried out by independent valuation firm, Grant Thornton, appointed by the Board.

“The combined airline will create a more competitive business, both in scale and scope of operations to emerge as a market leader in the Indian domestic aviation industry,” the UB Group Chairman, Mr Vijay Mallya, said.

Taken from Business Line

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