Jet taps PEs for Rs 450 cr to fly Lit

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. The company is raising money for meeting the operational expenses of running the loss-making Air Sahara, which it recently acquired.
Industry sources say while TPG Capital is looking to co-invest along with Singapore-based fund Temasek, Blackstone is looking at clinching the deal alone.
The deal, which would require shareholder approval, will bring fresh equity infusion into the company through a preference share issue. 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.
Sources in the industry say the private equity placement is being made to run the operations of the erstwhile Air Sahara.
25/04/07 Gaurie Mishra/Economic Times

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Categories: Jet Airways Apr 2007, Jet Lite Apr 2007