For the Air India bid, around $1 billion war chest is being arranged by the SpiceJet promoter Ajay Singh. Likely to see investments from two United States-based funds, through a special purpose vehicle the bid shall be made. A minimum of 26% share Holdings in the special purpose vehicle shall be reportedly held by Singh, while around $700 million are likely to be contributed by the United States funds, as per a report released by Business Today.
As security, along with the equity allocated to Ajay as part of the planned hive off of SpiceJet cargo business, he shall also use his shares of the company along with the mentioned as a combination. As mentioned in a report in The Economic Times, around $300 million is aimed to be raised by him from that equity. Once the unit is listed, a part of his stake at the SpiceJet cargo unit might be offloaded by him.
Bidding for the government’s entire shareholding in the airline shall be Ajay’s contribution to the special purpose vehicle.
Subject to shareholder approval, planning has been done to turn its cargo business into a separate entity, as informed by the budget airline to the stock exchanges on 30th June.
Meanwhile for the submission of financial bids for Air India, a deadline for August third week has been set by the government.
