Low cost carrier, SpiceJet is believed to be in talks to sell some stake to the ruler of Ras al-Khaimah, which is part of the UAE. Despite dismal market conditions, there still seems to be interest in aviation stocks, reports CNBC-TV18.
SpiceJet seems to be in demand. Suitors with investment proposals are apparently lining up. But the carrier is believed to be in talks with the ruler of Ras al-Khaimah to sell some stake in the company. Sources say the deal may be worth about $20 million for a 10 per cent stake.
But SpiceJet officials say no talks are under way with any investor. They admitted though, that after Air Deccan's listing, SpiceJet had three or four investment proposals from various parties and the airline was evaluating the proposals. They said nothing had been finalised yet.
If this deal goes through SpiceJet would be valued at about $200 million. Air Deccan is similarly valued, but it has a larger fleet and network.
Industry experts say that SpiceJet should wait for market conditions to improve so that it gets a better valuation. They say airlines are not, by and large, attractive stocks anyway and such a market would hardly help valuations.
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