Deal particulars: In a consolidating Indian aviation sector, Wilbur L. Ross & Co. outbid Kingfisher Airlines to acquire less than 15 per cent share in India’s second-largest budget carrier, SpiceJet, for $80 million. Company founder Wilbur Ross and Ranjeet Nabha, MD and CEO of WL Ross India, are expected to join the board of directors of SpiceJet.
Impact analysis: The deal is the second-biggest deal in the Indian aviation space after Air Deccan’s acquisition by Kingfisher last year and will bring in money for the cash-strapped SpiceJet. The airline will utilise the money to part-finance aircraft acquisitions and sustain its operations for a few more months. Further, SpiceJet will benefit from intellectual inputs from Wilbur Ross, who is known for his turnaround expertise.