Air Sahara capital raising surprises
31-Oct-2005 |
Airline Code [SHD]
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Air Sahara's decision to raise capital through a private placement share sale has reportedly (31-Oct-05) attracted eight bidders, including:
- Kingfisher Airlines (India);
- Blackstone Capital Partners (USA);
- Carlyle Group (USA);
- Temasek Holding (Singapore).
Air Sahara, in early Oct-05, appointed Ernst & Young as advisor to raise up to INR100 million in fresh capital, either through a strategic investor or a private equity firm. Later in the month Air Sahara stated that all options on future funding and strategic alliances are open, and it is also looking for merger/acquisition opportunities with some other airlines as well. In response Kingfisher Airlines stated that it is considering acquiring the entire shareholding in Air Sahara. Funds raised would reportedly be used to finance the carriers fleet acquisition plans, including the acquisition of 15 B737-800 aircraft (delivery dates not disclosed) and the lease of three new aircraft by Jan-06 (type undisclosed).
Meanwhile, Air Sahara is reportedly (23-Oct-05) expected to report a net loss of INR170 million in the 12 months ending 31-Mar-06, taking accumulated losses to INR1.2 billion, according to a report prepared by Ernst & Young.
Air Sahara currently has a fleet of 26 leased aircraft, offering 140 services daily to over 25 destinations, including London and Singapore. |
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Air Sahara capital raising surprises 
