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India: SpiceJet promoter in talks with Middle East carrier over possible stake sale

Shares of the airline hit a more than two-month high on Wednesday

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Shares of India's SpiceJet Ltd surged nearly 18 per cent on Wednesday to hit a more than two-month high, after a report said its promoter Ajay Singh was exploring a possibility of a partial stake sale in the budget carrier.

SpiceJet is in talks with a Middle Eastern carrier for the possible stake sale and talks are ongoing with a large Indian conglomerate, Indian news channel CNBC-TV-18 reported, citing sources. Singh holds about 60 per cent stake in the airline, it added.

According to Times of India, airline sources have said that the Middle Eastern carrier with which Singh is in talks is interested in a 24 per cent stake and seat on the Spice Jet board. They have also said that a big Indian business conglomerate has approached Singh for a stake in the airline.

The report comes amid the domestic airline being under the spotlight lately following a slew of incidents of technical snags and India's aviation regulator last week ordering SpiceJet to slash its approved fleet to 50 per cent this summer for eight weeks.

Meanwhile, SpiceJet said on Tuesday it had cleared all of its outstanding principal dues with the state-run airport operator Airports Authority of India.

SpiceJet shares, which have fallen nearly 24 per cent so far this year, posted a record intra-day jump in early trade on Wednesday, according to Reuters.

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