Vijay Mallya-led UB Group is all set to meet the month-end deadline for payment of Rs 400 crore (Rs 4 billion) balance toward 26 per cent stake it had picked in Deccan Aviation [Get Quote], the promoter of low-cost carrier Air Deccan. "UB is not going to sell any shares and the company has the money ready to meet the deadline," Mallya told reporters here to questions on how he would fund the deal, including through an initial public offer.
He, however, said the group, whose open offer to acquire another 20 per cent stake will be launched in July, "is open to exploring all possibilities." UB Holdings had, on May 31, announced that it will acquire a 26 per cent stake in Deccan for Rs 550 crore (Rs 5.5 billion).
It had made an upfront payment of Rs 150 crore (Rs 1.5 billion) and the balance was to be paid in four weeks.
"Kingfisher's talks with Deccan have been extremely productive. Some of the initiatives discussed are already being implemented which will reflect soon," he said. "We will fully leverage the extraordinary network of both the airlines," he added.
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