Kingfisher Airlines is discussing with international carriers a possible sale of stake up to 25%, the Economic Times reported. The move follows the centre's proposal of policy change to allow foreign airlines to invest in domestic carriers with a cap of just below 26%.
The discussions are reportedly with British Airways, Singapore Airlines and Virgin as the investment is expected to fetch a higher valuation compared with the Private Equity investors.
There remains uncertainty on when the government would permit foreign airlines to hold equity in Indian companies. The civil aviation ministry met the airlines on October 30 to discuss key policy changes including allowing foreign airlines to pick up stake in domestic carriers.
It may be noted that when foreign airlines are permitted to invest in aviation companies, other institutions and foreign investors are free to hold up to 49% stake.
It is believed that Vijay Mallya is not keen on selling equity at a valuation lower than $1 billion.
Source: RTT News