TPG Cap vying for Kingfisher Airlines stake

Bangalore/New Delhi: Bulge bracket private equity firm TPG Capital figures among the potential investors lining up to invest over $400 million for a substantial stake in Vijay Mallya-led Kingfisher Airlines, according to multiple sources.
TPG has been in talks with Kingfisher for a few months now, and there is no certainty that a deal would happen, sources added. Kingfisher Airlines , following its reverse merger with Deccan Aviation, is looking at a valuation of over $1 billion in a market ravaged by the global credit crisis.
“I am not in talks with TPG,” Mr Mallya said in reply to an email query, strongly denying the possibility of a transaction. However, UB group executives confirmed ongoing talks but declined to divulge any details. Unconfirmed information suggested that Kingfisher Airlines was also in discussions with two more potential investors whose identity could not be ascertained at the time of going to press.
TPG has tracked the aviation industry closely with past investments covering Continental Airlines. In 2006, it partnered Macquarie Bank to launch an unsuccessful bid for Qantas. Last month, Mr Mallya had said he was in the market to raise $400 million for Kingfisher Airlines.
Over the last two years, Kingfisher Airlines has talked about raising $250-300 million but has not seen plans in this regard take off. Deccan Aviation, to be renamed Kingfisher Airlines following the completion of the merger process, closed 7.44% down at Rs 55.40 on the BSE, almost touching a 52-week low.
30/09/08 Boby Kurian & Chanchal Pal Chauhan/Economic Times

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Categories: Kingfisher Sep 2008, New Sep 2008