Dubai's Istithmar has exited by selling its entire 6.9% stake in SpiceJet Ltd for $25.3 Mn.

The investment arm of Dubai World sold 22.14 Mn shares to clutch of investors at an average price of Rs 53.52 per share.

Bank of America Merrill Lynch was the sole arranger of the transaction.

Transaction Reference: DNA

In February this year, Istithmar sold 13.39% in SpiceJet through open market. Istithmar which was still holding 8.5% in the company through FCCBs, was recently converted into equity shares, bringing down its stake to 6.87% in SpiceJet.

Recently, Kalanithi Maran of Sun TV Network Ltd bought 37.7% stake in SpiceJet from its promoter Bhupendra Kansagra and Wilbur L. Ross for Rs.746 Cr through his personal capacity and through his holding company KAL Airways .

Maran has also made a mandatory open offer to the minority shareholders of SpiceJet for buying a minimum stake of 20% at Rs 57.76 per share, which is likely to happen in August, subject to SEBI approvals.

Last month, Goldman Sachs Investment Partners Mauritius bought 6% stake in SpiceJet by converting 1.5 Cr warrants it had purchased from the airline in December 2008 into equity.

Few months back, US based - Bravia Capital Partners had planned to invest $40 mn in Spicejet through a mix of shares and warrants, but no development has been made on this part.

This year, Spicejet had announced to raise Rs 355 Cr through the sale of shares or bonds to fund its fleet and route expansion programme.

Spicejet reported a turnover of Rs 2,181 Cr in 2009-10 with net profit of Rs 334 Cr.

IndiGo has announced to raise funds to finance its expansion plans and has hired UBS AG, Morgan Stanley, Credit Suisse Group and Citigroup Inc. to raise the money either through PE or an IPO.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
13/09/11	Spicejet - Kalanithi Maran	M&A	Kalanithi Maran	27.60
22/08/11	Spicejet - TPG Capital	Private Equity	Texas Pacific Group Capital	258.84
07/10/10	Spicejet - Kalanithi Maran(5%)	M&A	Kalanithi Maran	20.00
06/07/10	SpiceJet Ltd. - Istithmar World (Stake Sale)	Private Equity	Unknown	25.30
14/06/10	Kalanithi Maran - SpiceJet - Open Offer	IPO / Offerings	Looking For	-
14/06/10	Spicejet - Kalanithi Maran	M&A	Kalanithi Maran	172.10
29/04/10	Spicejet - Bravia Capital	Private Equity	Bravia Capital Partners Inc.	40.00
06/04/10	SpiceJet - Religare	M&A	Religare Voyages Limited	-
30/03/10	SpiceJet-Kalanithi Maran	M&A	Kalanithi Maran	155.16
05/02/10	Istithmar-Spicejet-Exit	Private Equity		34.60
19/01/10	Spice Jet- Raise Funds	IPO / Offerings		-
14/07/08	SpiceJet Ltd. - WL Ross &	Private Equity	India Asset Recovery Fund LP.	80.00
31/01/07	SpiceJet Ltd. - Ewart Investments Ltd.	Private Equity	Ewart Investments Limited	16.10
30/12/06	Spicejet - Leverage India Fund Exits	Private Equity		-
07/09/05	SpiceJet Ltd. - Istithmar World	Private Equity	Istithmar World	12.20
16/02/05	SpiceJet Ltd. - Leverage India Fund	Private Equity	Leverage India Fund	-
04/02/05	SpiceJet Ltd. - Tata Investment Corp.	Private Equity	Tata Investment Corporation Limited	1.19

 

  Recent Transactions In The Sector

Date	Type	Buyer	Target	Size ($mn)	State
19/01/12	Private Equity	SC Lowy	Kingfisher Airlines Limited	280.00	Planned
15/11/11	Private Equity	Elephant Capital	Air Works India Engineering Private Limited	0.80	Completed
28/09/11	IPO / Offerings		Swajas Air Charters Limited	-	In-Process
13/09/11	M&A	Kalanithi Maran	Spicejet Limited	27.60	Announced

 

  Profiles

Fund
Name	Corpus	Target Sector	Website	KeyContact
Istithmar World		Agro/FoodStuff Auto Airline	http://www.istithmarworld.com/	Sultan Ahmed Bin SulayemNick HornungAhmed Bin SulayemAndy WatsonSaeed Ahmed SaeedBinod NarsimhanSandesh PandhareShuja Ali

Company
Name	Promoters	Office	Competitor	Website
Spicejet Limited	Royal Holdings Services Limited	Near Steel Gate Bus Stop, Terminal - 1, Indira Gandhi International Airport	Kingfisher Red Indigo JetLite Kingfisher Airlines Limited InterGlobe Aviation Private Limited	www.spicejet.com
Unknown			Rajamahendri Shipping & Oilfield Services Limited Jubilant Organosys Limited Unknown Asset

  Advisor

Bank Of America Merrill Lynch