Mumbai: The Chief Financial Officer of UB group, Ravi Nedungadi has reported that the UB group and its founder Vijay Mallya will have about 69 % share in Deccan Aviation Ltd, which is to be renamed Kingfisher Airlines, after the merger of the two airlines.

According to the top UB group official, UB group will own 60.6 percent and Mallya and his entities 8.4 percent in the company. Presently, UB group holds about 49 percent of Deccan, a budget airline, and almost the entire stake in unlisted Kingfisher Airlines.

The issue of three shares for every seven held in Kingfisher Airlines as part of merger of the latter's airline operations with itself was approved by Deccan's board, late on Thursday.

Declining to spell out the valuation of the merged entity, Ravi Nedungadi said, "There was no absolute valuation presented to us. The reports gave us relative values for the share swap."

The share swap ratio was recommended by KPMG and Dalal and Shaw.

Nedungadi said, "The share swap was a major step in new capital structure. We will simultaneously look at raising the money."

The coalesced airline, which will operate two brands, Kingfisher, a full service carrier and Deccan, a budget airline, is ridden with a combined loss of more than 20 billion rupees and has said it plans to sell shares worth up to $300 million. Yet, the merger creates one of the biggest airlines in the country with a market share close to a third. Deccan will also complete five year of operations in mid-2008 allowing it to fly abroad.