New Delhi: Budget airline SpiceJet on Tuesday said shareholders have approval the transfer of cargo and logistics services business to its subsidiary, SpiceXpress, on slump sale basis valued at Rs 2,555.77 crore. The airline, in a release, said, “The consideration for the slump sale shall be discharged by SpiceXpress by issuance of its shares in favour of SpiceJet.”
It stated that the logistics business will result in a one-time gain of Rs 2,555.77 crore and wipe out a substantial portion of the SpiceJet’s negative net worth.
As of June 30, 2021, the carrier had a negative net worth of Rs 3,300 crore. Post the transfer, the negative net worth will come down to around Rs 745, SpiceJet added.
Ajay Singh, Chairman and Managing Director, SpiceJet, said, “Post the transfer of the logistics business, the new company will be able to raise capital independently of SpiceJet to fund its growth. We have also received shareholder approval to raise funds through a QIP (Qualified Institutions Placement) ensuring our long term growth plans remain intact.”
SpiceJet plans to raise Rs 2,500 crore through a QIP.
As per the company’s last quarterly result, ending on June 30, SpiceXpress posted a net profit of Rs 30 crore. Currently, the logistics arm’s network spans over 68 domestic and over 110 international destinations including US, Europe and Africa.
Last week, the airline said it had started 38 new domestic and international flights.
SpiceJet also looks to start operating Boeing MAX 737 aircraft as it has settled with CDB Aviation.
In August, the Directorate General of Civil Aviation (DGCA) cleared 737 MAX aircraft to fly with immediate effect.
The B737 MAX was grounded across the globe in March 2019 after two crashes in five months that killed 346 people.