Rakesh Gangwal, co-founder of India’s leading airline IndiGo, invested over $100 million in Southwest Airlines, a US carrier in which he is currently a director.
Gangwal made the investment to acquire 3.6 million shares in the Texas-based airline.
Gangwal acquired the shares between September 30 and October 1, paying $29 to $30 per share, according to Securities and Exchange Commission filings, media reports said.
Significantly, the investment comes at a time when activist investor Elliott Investment Management keeps pressuring the US airline company for leadership changes.
It also follows closely on the heels of Gangwal and his family trust reducing their stakes in InterGlobe Aviation – the parent company of IndiGo, which Gangwal co-founded with Rahul Bhatia, by selling a combined 5.83 per cent shareholding for about $1.25 billion (INR 105 billion) in August this year.
Gangwal joined the board of Southwest Airlines in July.
His role in influencing the airline’s strategic direction is expected to increase following the investments.
Southwest recently announced significant board changes, including Executive Chairman Gary Kelly’s retirement along with six other directors.
Despite these alterations, Elliott continues to demand further modifications, including CEO Bob Jordan’s removal.
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