Texas Pacific, 2 PE firms eye Air Deccan stake

Mumbai: The US-based private equity firm Texas Pacific group, among three others, is in talks with country?s second largest airline Air Deccan for picking up a minority stake.
Sources said the low fare airline is planning to raise around $100 million by diluting 5 to 7 per cent stake to private equity players. Air Deccan has mandated Edelweiss Capital for raising funds which would be utilised for expansion.
?Edelweiss has shortlisted three to four players who are willing to invest in Air Deccan. A deal is likely to be signed in next 10 days. Among four players, Texas Pacific has emerged as aggressive player,? the sources said.
Texas Pacific, which has made investments in airlines globally, had dropped its plans to invest $30 million in the Delhi-based budget carrier SpiceJet owing to differences in valuation. A senior Air Deccan executive declined to comment on the issue.
08/04/07 P R Sanjai/Business Standard

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Categories: Air Deccan Apr 2007, Foreign Apr 2007