RIL denies report of buying stake in Kingfisher
A spokesman for Reliance Industries denied on Wednesday a newspaper report the energy major was in talks to buy a stake in cash-strapped Kingfisher Airlines.
Mumbai: A spokesman for Reliance Industries denied on Wednesday a newspaper report the energy major was in talks to buy a stake in cash-strapped Kingfisher Airlines.
The Hindu Business Line newspaper had reported that Reliance might make a financial investment or pick up a stake through a preferential offer by the carrier, which could be followed up by an open offer to public shareholders.
Citing an unnamed person close to the airline, the paper said Reliance was understood to have engaged a merchant banker to carry out due diligence of the carrier.
Ravi Nedungadi, chief financial officer of UB Group, the airline's parent, had said on Tuesday it had been approached by strategic investors.
An official with one of Kingfisher's lenders had also said the carrier's chairman, Vijay Mallya, was talking to a potential strategic investor.
Kingfisher, which reported a September quarter loss of 4.69 billion rupees ($92 million) on Tuesday, cancelled scores of flights last week as it abruptly shut some routes. It has also been late paying salaries.
Vijay Mallya's Kingfisher Airlines loses court battle in UK against BOC Aviation, to pay $90m in claims
Embattled liquor tycoon Vijay Mallya has lost another legal battle linked to his now-defunct Kingfisher Airlines after the UK High Court awarded Singapore-based BOC Aviation an estimated $90 million in claims
With cash-starved private carrier Kingfisher Airlines defaulting on lease rentals of around Rs 1,000 crore, the lessors have taken back 34 aircraft