India’s largest private airline Jet Airways is in negotiations with private equity players Blackstone, TPG Capital and Temasek for raising Rs 400-450 crore reported the Economic Times.
The company is raising money for meeting the operational expenses of running the loss-making Air Sahara, which it recently acquired. The operational expenses for Jet are huge since Air Sahara is not very profitable. Reportedly TPG Capital is looking to co-invest along with Singapore-based fund Temasek, while Blackstone is considering going solo.
The promoters currently hold 80% stake in the company which will come down proportionately along with the other shareholders’ stake. The private equity investor may take 8-9% stake.
Jet Airways recently acquired Lucknow-based Air Sahara in a deal valued at Rs 2,300 crore. While Jet had paid Rs 400 crore upfront, it will pay Rs 550 crore in four annual instalments, starting next year. Air Sahara will be renamed JetLite and will be a 100% subsidiary of Jet Airways.
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