INDIA: Kingfisher-Deccan merger nearing completion

The Kingfisher Airlines-Air Deccan merger will be completed in April following a sale of shares that will raise US$300 million to finance immediate expansion needs. "At the present moment, we are in talks to appoint a suitable merchant banker for the share sale by the end of this month," Deccan Aviation VP-Finance Anand Ramachardran said. […]


The Kingfisher Airlines-Air Deccan merger will be completed in April following a sale of shares that will raise US$300 million to finance immediate expansion needs.

"At the present moment, we are in talks to appoint a suitable merchant banker for the share sale by the end of this month," Deccan Aviation VP-Finance Anand Ramachardran said.

Deccan has also filed an application with regulators seeking permission for the merged airline to fly international routes starting in August, which will mark Air Deccan¡¯s fifth anniversary. Private Indian carriers must operate for fi ve years before legally being allowed to operate internationally.

Last month, the companies approved the swap ratio for the merger under which Deccan Aviation will issue three shares for every seven held in Kingfisher. Deccan will issue fresh additional shares to Kingfisher shareholders.

The airline business of Kingfisher will officially be merged into Deccan Aviation and the combined airline company will be renamed as Kingfisher Airlines, effective 1 April, subject to regulatory clearance.