US Billionaire Wilbur Ross Invests in SpiceJet

Wilbur Smith, an American billionaire investor specializing in leveraged buyouts, will invest in Spicejet, low-cost New Delhi based Indian Airline, by buying foriegn currency convertible bonds (held by Istithmar PJSC and Goldman Sachs Group Inc.) worth $80 million (345 million rupees). Wilbur Ross and Ranjit Nabha (chief executive of WL Ross India) are expected to join the board of directors for the airline.  Spicejet had been actively looking for capital and a lot of people had shown interest including Reliance’s Anil Ambani.

From Bloomberg -
“`This investment reflects the fact that there is still belief in the long-term potential of Indian aviation,” said Binit Somaia, a director for the Indian sub-continent at the Sydney-based Centre for Asia Pacific Aviation. “There is interest from investors when assets are available at good valuations.””
From BusinessWeek -
“We believe in the long term validity of the low cost airline model in India and that fuel prices eventually will stabilize,” said Chairman and Chief Executive Wilbur L. Ross Jr. in a joint statement issued by SpiceJet and New York-based WL Ross & Co.”

~ by krishna Raj on July 15, 2008.