Deccan-Kingfisher merged entity to raise $250 m for capex

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Bangalore, Jan. 23:

The merged entity of Deccan Aviation and Kingfisher Airlines plans to raise funds of upwards of $250 million through equity for its capex needs.

Mr A. K. Ravi Nedungadi, the President and the Chief Financial Officer of the UB Group which owns both the airlines, told Business Line that the funds are being raised for capex as well as for business needs. He said the issue of raising funds will be taken up at the next board meeting of Deccan Aviation on January 30. On that day, KPMG is expected to present a report on the valuation of the merged entity before the board.

The UB Group which owns 50 per cent stake in Deccan Aviation wants to raise the funds as soon as possible, Mr Nedungadi said. On December 19 last year, the boards of both the airlines agreed to merge and create a single corporate entity to reduce operational costs as well as become a profitable venture.

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