New Delhi: Media firm Zee Entertainment Enterprises on said it will fully acquire aviation firm Fly By Wire for a total consideration of Rs 61.25 crore in an all-cash deal.
In a BSE filing, Zee Entertainment Enterprises said "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)."
Fly By Wire International provides aircraft charter services which own/operates one Bombardier Challenger 605 aircraft.
On the reasons for investment, Zee said: "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."
On cost of acquisition, it said: "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 acquire 49 per cent stake in FBW and balance 51 per cent will be acquired within five days of receipt of approval from Ministry of Civil Aviation. The process is expected to be completed by mid-July, the company said.