Texas Pacific pulls out of a deal with SpiceJet

Texas Pacific Group, the US-based private equity fund, has decided to pull out of the deal with the low-cost carrier SpiceJet in which it had decided to invest USD 30 million. Senior SpiceJet executives said that the US-based fund has expressed its inability to participate in this round of fund-raising by the low-cost carrier as its top management was busy with an ongoing USD 11 billion deal for buying out Australian airline, Qantas, by a consortium of private equity players. On the other hand the sources in investment banking circles cited differences over valuation. "They have told us that they will re-visit us in the near future" said Siddhant Sharma, CEO, SpiceJet. The company is holding its EGM on Thursday to ratify the preferential allotments. The shares were offered at an average price of Rs 51.36 per share. After this round of dilution, the stake of the promoters — which includes the UK-based Kansagra family, director Ajay Singh and associates — will come down from around 18% to 15%. SpiceJet will have an extraordinary shareholder’s meet on Thursday to finalise the share allocations.

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