27 May, 2015
On February 19, 2015, CCI approved the proposed transaction involving sale and transfer of 58.46% equity shares of SpiceJet (‘SpiceJet’) by KAL Airways Private Limited (‘KAL’) and Mr. Kalanithi Maran to Mr. Ajay Singh. The notice was filed pursuant to an approval received from the Ministry of Civil Aviation for a scheme of reconstruction and revival, for takeover of the ownership, management and control of SpiceJet and the execution of a share purchase agreement.
CCI observed that Mr. Ajay Singh is a first generation entrepreneur and has experience in business of information technology and airline operations. SpiceJet is a listed scheduled passenger airline company engaged in providing domestic and international airline services in India.
While assessing the proposed combination, CCI observed that there were no horizontal or vertical relationship between SpiceJet and Mr. Ajay Singh. In addition, the proposed combination was transfer of shares and control in SpiceJet from KAL and Mr. Kalanithi to Mr. Ajay Singh. Mr. Ajay Singh was not engaged with operations or ownership of any other existing airline.
In light of the above, CCI held that the proposed acquisition is not likely to have any AAEC in India, and approved the transaction under Section 31(1) of the Competition Act.
For further information, please contact:
Zia Mody, AZB & Partners
zia.mody@azbpartners.com
Abhijit Joshi, AZB & Partners
abhijit.joshi@azbpartners.com
Shuva Mandal, AZB & Partners
shuva.mandal@azbpartners.com
Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com
Percy Billimoria, AZB & Partners
percy.billimoria@azbpartners.com
Aditya Bhat, AZB & Partners
aditya.bhat@azbpartners.com
