Kingfisher Airlines has lost the race to acquire low-cost carrier Spicejet.
The promoters of Spicejet -- the UK-based Kansagra family -- and Gulf-based investor Istithmar have accepted US-based investor Wilbur Ross' offer instead.
Ross will pay approximately Rs 350 crore to acquire roughly 25 per cent stake in Spicejet.
Kingfisher chairman Vijay Mallya admitted on Monday night he was no longer interested in buying Spicejet.
Mallya had reportedly been talking to the Istithmar and the Kansagra family who together hold roughly 25 per cent stake in SpiceJet.
The board of directors of SpiceJet has accepted an offer in-principle from the US-based PE firm that would make available about Rs 345 crore (around USD 80 million) to SpiceJet, a joint statement issued by SpiceJet and WL Ross & Co said.
"We are delighted to have WL Ross as an investor in SpiceJet. WL Ross is one of the largest and the most experienced investor in the world. With this investment, we have no doubt that SpiceJet will fulfill its promise of emerging as India's leading airline," SpiceJet board member Bhulo Kansagra said.
"We believe in the long term validity of the low cost airline model in India and that fuel prices eventually will stabilise," Chairman & CEO, WL Ross & Co LLC Wilbur L Ross said.
This would be WL Ross' second investment in India. Last year, WL Ross had acquired apparel maker OCM India for about USD 37 million.
"SpiceJet is one of the most efficient airlines in India. We are delighted to contribute to its growth and development," Ranjeet Nabha WL Ross India Managing Director & CEO said.
Shares of SpiceJet were trading at Rs 30.05, up 7.51 per cent in the morning trade on the Bombay Stock Exchange.