TPG Capital eyes stake in IndiGo

Leading global private equity fund TPG Capital (formerly Texas Pacific) is in talks with budget carrier IndiGo to pick up a 10-15 per cent stake in the airline.
Top executives of the airlines have started negotiations and the deal is expected to happen in the next few months, according to investment banking sources.
"IndiGo is considering dilution of promoters’ equity and are is in talks with TPG for a possible sale of shares,” a source said. When contacted, Rahul Bhatia, managing director of InterGlobe Interprises, which owns the airline, said that the company was not looking at any dilution of promoters’ equity. “We do not have any plans to dilute equity. We have enough funds to take care of the future requirements of the airline,” he said. InterGlobe Enterprises and the former president and chief executive officer of US Airways, Rakesh Gangwal, had jointly promoted IndiGo.
However, sources close to TPG said that that the private equity firm is exploring investment opportunities in the aviation sector in the country and Indigo is one of its target companies.
19/08/07 Indulal PM & Lalatendu Mishra/Hindustan Times

To Read the News in full at Source, Click the Headline

Categories: Indigo Airlines Aug 2007