Kingfisher Airline’s billionaire owner -Vijay Mallya- is mulling the sale of a portion of his stake in the flagship liquor business in order to rescue the beleaguered airline, whose cash crunch continues to worsen as banks refuse to lend more money in absence of equity support from the promoter.
Talks have also reportedly begun with Heineken to sell a portion of the 40.57% stake owned by United Breweries Holdings, the main promoter company in United Breweries, in order to bail out cash struck Kingfisher Airline. Amsterdam-based global beer Heineken which owns 37% stake in United Breweries, could become the controlling owner if the transaction fructifies.
Further, it is also reported that Mallya is also open to the idea of selling a small stake in United Spirits, the makers of McDowell whisky. The promoters own about 28.01% in the company, but a massive chunk, about 91.45%, is pledged with financial institutions and banks.
The stricken airline has sharply reduced the number of daily flights, laid off a large chunk of its employees and shut down operations in some domestic and all international routes. Banks, which have lent the airline over Rs 7,000 crore, have refused to give more money unless the promoters bring in money of their own.
