The popular media firm Zee Entertainment Enterprises today said that it will be fully acquiring the aviation firm ‘Fly By Wire’ for a total amount of Rs 61.25 crore.
Fly By Wire International is an organisation that provides aircraft charter services which own and operates one Bombardier Challenger 605 aircraft.
“The Board of Directors of the company… has approved in-principle an acquisition of 100 per cent equity stake in Fly By Wire International Pvt Ltd, Bangalore (FBW)”, as said by Zee Entertainment Enterprises.
The media firm said the following on the reasons for investment, “Subsequent to sale of the smaller aircraft owned by the company, the company has 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 per cent equity stake in FBW”.
Regarding the cost of acquisition, Zee said that “In addition to the consideration of Rs 2.75 crore payable for entire stake in FBW, target entity also has an outstanding bank loan of Rs 58.50 crore availed earlier by FBW for financing the said aircraft”.
Initially the company will be acquiring 49% stake and the remaining 51% will be acquired within 5 days of receipt of the approval from the Ministry of Civil Aviation. The company expects this process to be completed by the mid of July.