Deccan Aviation Ltd [Get Quote], the company that runs low-cost carrier Air Deccan, on Thursday announced it has sold 26 per cent in the airline to Vijay Mallya's UB Holdings for Rs 550 crore (Rs 5.5 billion).

UB Holdings has already paid Rs 150 crore (Rs 1.5 billion) and the remaining amount would be paid in the next four weeks, Air Deccan managing director G R Gopinath told reporters after the company's board meeting.

The transaction, which values Air Deccan at Rs 155 a share, would be through allotment of non-preferential shares to UB, he said.

UB Group runs the premier full-service, true-value carrier Kingfisher Airlines.

Gopinath would continue to remain the executive chairman of the board, while Mallya would be the vice chairman. The promoters and investors would have equal number of directors, besides six independent directors.