SpiceJet Shares Jump On Settlement Offer To Maran
SpiceJet Vs. Maran: Supreme Court lists matter for further hearing on Feb. 14.
SpiceJet Ltd. offered to pay Rs 600 crore ($80 million) to settle a long-standing dispute with the budget airline's former owner Kalanithi Maran and his firm KAL Airways, Bloomberg reported.
The case is underway in the Supreme Court, which has advised Maran to consider SpiceJet's proposal and listed the matter for further hearing on Feb. 14, according to a company statement cited by Bloomberg.
Shares of SpiceJet rise over 5.6%, the biggest intraday gain in nearly two weeks.
The offer aims to settle the dispute that stems from Ajay Singh’s 2015 takeover of the then struggling airline. Maran and his Kal Airways had transferred 350.4 million shares or 58.46% stake to Singh, In return, Maran was supposed to get redeemable warrants for Rs 690 crore he invested in the airline.
SpiceJet Vs. Maran
The Delhi High Court in 2016 ordered that the share transfer dispute should be decided by an arbitration tribunal.
In 2018, the arbitration resulted in an order of refund of Rs 579 crore plus interest to Kalanithi Maran, while Maran was asked to pay Rs 29 crore to Spicejet and Singh.
In September 2020, during the proceedings for enforcement of the tribunal’s order, the Delhi High Court asked Spicejet to deposit Rs 242 crore for securing the interest on the award.
The company challenged this order of the high court before the Supreme Court. The top court issued notice on petition and stayed the high court order in November, 2020.
Today, the top court was hearing the application seeking a vacation of the stay order and the offer by Spicejet was made during these proceedings.
The bench adjourned the hearing today and will now take up the case next week.