UB Group picks up additional 20% in Deccan Aviation, stake up at 46%

Mumbai: Vijay Mallya''s UB Group has acquired another 20 per cent in Deccan Aviation Ltd., raising its stake in India''s biggest budget airline to 46 per cent, according to information supplied to the Bombay Stock Exchange.

Bangalore-based UB Group, which acquired 26 per cent in Deccan Aviation in May, last month offered to acquire another 20 per cent in the budget airline, as per mandatory rules prevalent in India''s markets. UB acquired 12.8 percent and 7.2 per cent through group companies Kingfisher Radio Ltd. and UB Overseas respectively, Edelweiss Capital Ltd. said.

UB Group acquired the shares at the earlier-agreed price of 155 rupees ($3.9) a share.
Deccan Aviation and Mallya''s Kingfisher Airline Ltd., both based in Bangalore, are seeking to reduce operational and maintenance costs through their merger.

UB, which paid 5.5 billion rupees for the 26 per cent initial stake, will pay 4.2 billion rupees for the additional 20 per cent stake, or 27.13 million shares.