UB takes 26% stake in Air Deccan

Deccan Aviation Ltd, 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. UB Holdings has already paid Rs 150 crore and the remaining amount would be paid in the next three months, 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. The combined market share of both the airlines will be around 34% (Air Deccan - 22-24% and King Fisher - 11-12%).

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