Kingfisher identifies three PE firms to raise $400 m

Mumbai: Private carrier Kingfisher Airlines is believed to be in talks with private equity players Abu Dhabi-based Aabar Investments, Washington DC-based Carlyle Group and New York-based Texas Pacific Group to raise $400 million.
Kingfisher Airlines chairman Vijay Mallya had said in New Delhi last month that the company is in talks with PE players for raising money, and would use the funds to retire the company's debts. The airline has a debt of $1.2 billion (Rs 5,640 crore) on its books as on September 2009.
The interest expense for the airline for the September-ended quarter was Rs 262.42 crore. Airlines in India, which have accumulated huge debt in their books as they borrowed to fuel their expansion plans, will find raising further debt difficult, and will look at raising money through the equity route.
In 2005, erstwhile Air Deccan, SpiceJet and Paramount Airways have raised funds worth $150 million (around Rs 700 crore) from private equity firms. Last year, SpiceJet raised Rs 345 crore from Wilbur Ross.
When asked about the company's talks with PE firms, an airline spokesperson said, "We do not comment on such news." Manoj Dengla, a vice president focused on Asia buyout opportunities at Carlyle said, "As a company policy, we do not comment on such things." Email queries to Aabar Investments and TPG did not elicit a response.
30/12/09 Shaheen Mansuri/Financial Express

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Categories: Kingfisher Dec 2009