UB Group awaits Accenture report on its aviation operations
31 October 2007Mumbai: Accenture Ltd. will advise United Breweries (UB) on its aviation businesses, which includes Kingfisher Airlines Ltd and Deccan Aviation Ltd, according to Vijay Mallya, chairman, UB Group. According to Mallya, the global management consultant is expected to submit its report within six weeks.
Mallya recently acquired a 46% stake in Deccan Aviation. "Accenture is going to give us a report and based on the report we will take further steps," Mallya said.
Accenture had also won a similar mandate last year to advise the Indian Government on the proposed merger of the state-owned carriers Air India and Indian Airlines.
The UB Group last week gained control of 46% of Deccan Aviation after purchasing additional shares in an open offer. It had bought a 26% stake in Bangalore-based Deccan Aviation in May this year.
Meanwhile, the board of United Breweries Holdings Ltd has approved a proposal to raise Rs6 billion through sale of shares or securities linked to stocks. It will also issue Rs7.2 billion of warrants to the company''s promoters, it said. The money will be used to repay debt and expand the airline, Mallya said.