Vijay Mallya-led UB Group, which has acquired 26 per cent in Deccan Aviation Ltd, said on Wednesday its open offer for picking up an additional 20 per cent stake in the airline has been delayed as it is awaiting market regulator Securities and Exchange Board of India's nod.
The offer, which is being managed by Edelweiss Capital, was scheduled to open on Wednesday and close on August 13.
"Observations in terms of Sebi regulations are yet to be received from Sebi and are awaited. In view of the same, the schedule of activities announced earlier shall be required to be revised," Deccan Aviation said in a filing to the Bombay Stock Exchange.
The revised schedule of activities would be announced shortly upon receipt of observations from
Kingfisher Radio, a wholly-owned subsidiary of United Breweries Holding Ltd, has made an offer for acquiring 2.70 crore shares of Deccan Aviation at a price of Rs 155 per share.
UB group plans to utilise a combination of internal accruals and borrowed capital to fund the acquisition.
UB Holdings had announced the acquisition of 26 per cent stake in Deccan Aviation on May 31 for Rs 546 crore (Rs 5.46 billion). With the acquisition, the Kingfisher-Air Deccan combine would have the largest fleet of 71 aircraft -- 41 Airbus and 30 ATR aircraft -- in the domestic market.
Shares of UB Holdings were trading at Rs 717.10, down 0.66 per cent, while those of Deccan Aviation were trading at Rs 140.70, down 1.99 per cent, on the BSE.
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