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Our Bureau

Bangalore May 5 UB Holdings is planning to set up a wholly owned subsidiary abroad and also invest up to $125 million in Kingfisher Airlines.

An aviation analyst said the investments are being put in place to start international operations of Kingfisher Airlines.

In a notice to the Bombay Stock Exchange, UB Holdings said an extra ordinary general meeting has been called on May 21 for this purpose. The company also plans to invest Rs 40 crore in the rights issue of UB Engineering.

The company might lend up to Rs 1,000 crore to Kingfisher Airlines and invest up to $125 million in the airline's equity capital. It has also sought approval to acquire 4,624 shares for Rs 40 lakh in Maltex Malsters.

UB Holdings in its notice said the approval is being sought for an initial investment of $25,000 to be increased over a period of time up to $10,000,000 into a wholly owned subsidiary or in the share capital of an existing overseas company. It has also sought approval for issuing corporate guarantee or security for up to Rs 6,000 crore in favour of lenders on behalf of Kingfisher Airlines.

More Stories on : Outlook | Airlines

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