Ahead of a potential exit by Etihad Airways at the end of this month, Jet Airways’ main creditor, the State Bank of India, and its founder Naresh Goyal, who recently resigned, have reportedly ramped up the search for a new investor.
In fact, the hunt has taken SBI and Goyal, who owns a minority stake, to the US, according to media reports. SBI is said to be in preliminary talks with TPG Capital, a private equity major, while Goyal is pursuing an investment from Delta Airlines, which has an operational alliance with Jet in India.
Interestingly, private equity firm TPG Capital was said to be eyeing a stake in Jet’s loyalty programme Jet Privilege in August last year, although a deal never materialised.
A new investor is “critical” to Jet’s future, the airline’s CFO, Amit Agarwal, told ET earlier this week. Jet desperately needs a cash infusion. An official at the company told Moneycontrol that a buyer would have to pump ₹45 billion as part of the airline’s turnaround plan.
In addition to TPG and Delta, Singapore’s private equity fund Temasek and the Abu Dhabi Investment Authority (ADIA) are also said to be in talks to purchase a stake in the airline.
29/03/19 Dilsher Dhillon/Business Insider
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In fact, the hunt has taken SBI and Goyal, who owns a minority stake, to the US, according to media reports. SBI is said to be in preliminary talks with TPG Capital, a private equity major, while Goyal is pursuing an investment from Delta Airlines, which has an operational alliance with Jet in India.
Interestingly, private equity firm TPG Capital was said to be eyeing a stake in Jet’s loyalty programme Jet Privilege in August last year, although a deal never materialised.
A new investor is “critical” to Jet’s future, the airline’s CFO, Amit Agarwal, told ET earlier this week. Jet desperately needs a cash infusion. An official at the company told Moneycontrol that a buyer would have to pump ₹45 billion as part of the airline’s turnaround plan.
In addition to TPG and Delta, Singapore’s private equity fund Temasek and the Abu Dhabi Investment Authority (ADIA) are also said to be in talks to purchase a stake in the airline.
29/03/19 Dilsher Dhillon/Business Insider
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