Reliance denied talks to buy stake in cash-strapped Kingfisher.

Kingfisher airlinesMumbai: A spokesman for Reliance Industries denied on Wednesday in a newspaper report, the Indian energy major was in talks to buy a stake in cash-strapped Kingfisher Airlines.

A newspaper had reported that Reliance might make a financial investment or pick up a stake through a preferential offer by the carrier, which could be followed up by an open offer to public shareholders.

Ravi Nedungadi, chief financial officer of UB Group, the airline’s parent, had said on Tuesday that it had been approached by strategic investors.

An official with one of Kingfisher’s lenders had also said that the carrier’s chairman, Vijay Mallya, was talking to a latent strategic investor.

Kingfisher, which reported a September quarter loss of 4.69 billion rupees ($92 million) on Tuesday, cancelled scores of flights preceding week as it hastily shut some routes. It has also been late paying salaries.


Leave a comment