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ZEEL acquires remaining 51% in Fly By Wire
MUMBAI: Zee Entertainment Enterprises Ltd ( ZEEL) has completed the acquisition of Bengaluru-based charter plane services firm Fly By Wire (FBW) by acquiring the remaining 51% stake in the company after getting clearance from the Ministry of Civil Aviation (MCA).
ZEEL acquired 49% stake in FBW in May this year. In March last year, the company had announced that it would fully acquire FBW for Rs 61.25 crore.
The acquisition price includes consideration of Rs 2.75 crore payable for entire stake in FBW in addition to the outstanding bank loan of Rs 58.50 crore availed earlier by FBW for financing the said aircraft.
“Consequent to the receipt of approval from the Ministry of Civil Aviation and compliance of other requisite formalities, the company has acquired the balance 51% stake in FBW comprising 10,20,000 equity shares of Rs 10 each at an aggregate consideration of Rs 1,40,25,000,” ZEEL said in a BSE filing today.
FBW has become a wholly-owned subsidiary of the company effective 14 July.
Explaining the rationale behind the acquisition, ZEEL had said that it had been chartering the aircraft from FBW on an exclusive basis.
In order to save costs and for ensuring better operational efficiency, it is considered expedient to own the aircraft by acquiring 100% equity stake in FBW, it had added.
FBW provides aircraft charter services under an NSOP licence obtained from the Director General of Civil Aviation (DGCA) and currently owns/operates one Bombardier Challenger 605 aircraft.
The company reported turnover of Rs 1.33 crore (Rs 13.3 million) in FY15 compared to Rs 1.41 crore a year ago.