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SpiceJet promoter Ajay Singh set to raise $700-M from US funds for Air India bid

Economic Times  

SpiceJet promoter Ajay Singh is putting together a USD 1 billion war chest for his Air India bid, which will be made through a special purpose vehicle (SPV) that's likely to include participation from two US-based funds. The two funds are likely to contribute USD 700 million to it. Singh will maintain a minimum 26% shareholding in the SPV. He will use a combination of his shares in the listed company and equity that will be allocated to him as part of a planned hive-off of his airline's cargo business as security to raise about USD 300 million. This will be his personal contribution to the funding vehicle that will bid for the government's 100% shareholding in Air India. Singh may offload part of his stake in SpiceJet's cargo unit through the offer for sale (OFS) route once the unit is listed.