Dubai World Unit Exits Indian Budget Carrier SpiceJet

* username: rupertbu

Istithmar World PJSC, a unit of Dubai World, sold its 13 percent stake in SpiceJet Ltd., said Ajay Singh, a director at the Indian budget carrier.

Istithmar sold the stake to mutual funds, Singh said in a phone interview today. The Dubai fund continues to hold some bonds issued by the airline, the official said. A phone call made to Istithmar wasn’t answered during the weekend holiday in Dubai.

The Bombay Stock Exchange Web site at 5:30 p.m. showed DWS Invest BRIC Plus fund bought 8.85 million shares, Reliance Mutual Fund picked up 4.5 million shares and Birla Mutual Fund purchased 10 million shares from Istithmar. All the funds bought the shares at 52 rupees each.

SpiceJet shares, which have more than tripled in the past year, fell 1.65 percent to 53.8 rupees at close of trading in Mumbai.

In August 2008, billionaire investor Wilbur Ross and Goldman Sachs Group Inc. agreed to invest as much as $100 million in the airline.END