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BNP Paribas picks up 5.43 pc stake in Spicejet
PTI [ MONDAY, FEBRUARY 19, 2007 03:50:08 PM]
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MUMBAI: Low-cost carrier Spicejet on Monday said it has allotted 1.30 crore equity shares to BNP Paribas Arbitrage Fund out of the proposed preferential issue of 7.20 crore equity shares for over Rs 68 crore. BNP Paribas Arbitrage Fund acquired about 1.30 crore shares, representing 5.43 per cent stake in the airline company through the preferential allotment, Spicejet informed the BSE. The shares so allotted were issued at a price of Rs 52.69 per equity share, raising an amount close to Rs 68 crore, the company has said in an announcement. Other investors apart from BNP Paribas, who also picked up significant stakes in Spicejet, are Tata Group, Ishtitmar, Telemnix, Goldman Sachs and UK's KBC Fund.
Spicejet had informed the Bombay Stock Exchange recently that it would offer equity shares on preferential basis to various foreign and domestic investors. In December, it had planned to sell $80 million worth of shares on a preferential basis. The company had, however, received offers amounting to $118 million. Texas Pacific group, a leading global private investment which also wanted to invest in the carrier later withdrew the offer. Spicejet's offering of shares on preferential basis was aimed at raising funds for non-aircraft capacity expansion purposes like, investment in engineering and strengthening call centers.
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India eyes bigger slice of aerospace outsourcing
PTI [ MONDAY, FEBRUARY 19, 2007 03:00:00 PM] |
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BANGALORE: Indian software firms say they are well placed to grab a bigger share of the aerospace market as airplane makers and defence companies look to control costs by outsourcing design and management systems. Asia's fourth-largest economy is already a hub for global corporations to outsource software services from application development and system integration to supply chain management.
Global spending on engineering services was $750 billion in 2004, with aerospace accounting for 8 percent, and could rise to $1.1 trillion by 2020, according to the National Association of Software and Service Companies, India's IT industry lobby group. The total offshore engineering spend is expected to grow to $150-$225 billion by 2020 and India, with its talent pool and experience in engineering services, could pick up 25 per cent of that, according to the association.
Boeing would increasingly use Indian companies to get technology work done cheaper, Dinesh Keskar, senior vice president of Boeing's commercial airplanes division, told Reuters at the Aero India 2007 earlier this month.
The services provided by Indian software companies to aerospace firms include aircraft design, development of on-board electronics systems such as flight control and engine control, and ground systems like air traffic management.
Offset Policy Boost
Analysts say Indian's 2005 offset policy, which requires foreign aerospace firms to spend a percentage of the value of any Indian orders in India, such as in establishing a training centre or buying services and supplies from local companies, was also likely to boost outsourcing.
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More than 3,000 aircraft needed on the Chinese Mainland in next 20 years
Thursday, 15 February 2007
Airbus forecasts that the Chinese Mainland will need more than 3,000 passenger aircraft and freighters from 2006 to 2025, including some 2,050 single aisle aircraft, nearly 600 small twin-aisle aircraft, over 200 intermediate twin-aisle aircraft and 180 very large aircraft. Some 2,650 passenger aircraft will be required on the Chinese Mainland with a total value of US$ 289 billion. The Chinese mainland passenger fleet will triple in the next 20 years, from 760 at the end of 2005, to 2,700 in 2025. Freighter traffic in China is expected to grow six-fold and will need close to 400 freighter aircraft over the next 20 years. China's freighter traffic demand will remain at a high level with an average domestic market growth rate of 10.9 per cent p.a. and an average international market growth rate of 8.9 per cent p.a. "In terms of in-service aircraft, Airbus' market share on the Chinese Mainland has already increased from seven per cent in 1995 to the current 35 per cent. Our aim is to reach 50 per cent in 2011," said John Leahy, Airbus Chief Operating Officer Customers. "In next 20 years, the greatest demand for passenger aircraft will come from the Chinese Mainland just after the United States," he added.
The drivers of China's dynamic air transport growth include:Strong economic growth (eight per cent for the next 10 years) Progressive market liberalisation in China Fast growth in household spending on transport Addressable market for air traffic to reach 650 million consumers by 2015 Large Chinese outbound tourism wave coming China becoming a major tourism/business destination More export of high value manufacturing goods and emergence of a domestic express market
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Take-over talk swirls around Qantas
Sydney: 22 November 2006
The pursuit of Qantas by a consortium involving Texas Pacific Group and Macquarie Bank has the potential to test the Australian Government’s aviation regulatory strategy, according to the Centre for Asia Pacific Aviation. There is the prospect of an acquisitive and cashed up US private equity investor buying into an icon company which is highly politically sensitive and subject to a 49% limit on foreign shareholdings. At this stage, the nature of Macquarie’s role is as unclear as the ambitions of Texas Pacific. However, one thing is certain and that is Texas Pacific is a powerful and experienced stalker of companies, with private equity funds of up to USD20 billion and previous investments in Continental Airlines and America West, among others.
Qantas is a plum target - a financially robust carrier with a strong track record and access to the world’s fastest growing markets in the Asia Pacific.
It is also an awkward buy-out proposition, with a broad spread of institutional shareholders and “mums and dads” investors. However, there may be an upside for Qantas with Texas Pacific offering a possible vehicle for the airline to access fresh pools of foreign capital to fund its future aircraft acquisition and development programmes. Opponents to any potential deal will probably raise the issue of the overlap between Macquarie Bank and Macquarie Airports' majority ownership of Sydney Airport, but the entities are distinctly separate.
According to the Centre, if a concrete bid does materialise, Qantas could benefit from a strong, extremely well funded backer in Texas Pacific, which has been scouting the Asia Pacific region for several years for a long term investment, since its planned involvement in the failed Tesna bid to revive Ansett. Qantas' positioning with two strong brands for the business and leisure segments, its solid financial profile and strategic positioning make it an attractive target.
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