Will Mukesh Ambani buy a major stake in the ailing Kingfisher airlines? Some of the sources have said that the deal for buying out the sick driven Airliner along with UB group’s subsidiary Mangalore Chemicals and Fertilizers Ltd.
The officials at the Reliance industries, have however maintained that they are not aware of any such deal proposal. Earlier, rumours were spread that the Tatas as well as Singapore Airlines were interested in buying out the Kingfisher airlines. Though all of these have officially declined of any such speculations.
Business Line reports that as part of the buying deal, Mukesh might also be rewarded with a 30% stake in the UB group’s successful subsidiary – Mangalore Chemicals and Fertlizers Limited.
Stocks of Kingfisher Airlines (KFA), have reacted sharply to the market rumours. The stock is up by nearly 8%, following yesterday’s gains as well. Other airline stocks are also buzzing as the government is reported to consider the FDI investment in the airline industry. Stocks of the Mangalore Fertilizers (MANGCHEFER) – have also seen a surge of 4%.
Kingfisher has been going through a troublesome period, as losses have accumulated in massive proportions. The company is reported to have an accumulated loss and debt of nearly Rs 7,500 crore. It can be recalled that earlier during the year, the airline had to cut a majority of its operations to sail through this turbulent times. The accounts of the airlines were frozen by the government authorities, for non-payment of taxes. It becomes interesting to see if RIL can pump in freshness to this grief-struck industry.