Four prospective bidders have been shortlisted for the stake sale.
SBI Capital Markets is said to have shortlisted four prospective bidders for the stake sale in Jet Airways as a part of the debt resolution process. These include TPG Capital, Indigo Partners, Etihad Airways and NIIF. The qualified bidders are expected to submit their binding bids latest by May 10. It is a crucial process for Jet Airways that is battling a number of issues on multiple fronts to stay operational.
Here's a quick look at the bidders that are hoping to revive the troubled airline:
The 27-year-old US-based private equity firm has investments in a wide range of sectors from industrials and financial services to healthcare, technology and real estate. Interestingly, it's first ever major investment was in then-bankrupt Continental Airlines in 1993. The Texas-headquartered airline, in 2013, merged into United Airlines. In 1994, the PE firm created an Asia-dedicated fund-TPG Capital Asia, which is now being led by Puneet Bhatia in India. The firm marked its presence in the country with investments in a number of companies under the Shriram Capital Group. TPG has time and again shown its interest to make it big in the aviation industry across countries but has dropped out of the race on several occasions. It remains to be seen if it will go ahead and bid for the beleaguered airline in India.
The Phoenix-based private equity firm that has ample of experience in the aviation industry has been looking to enter the Indian territory. It had earlier shown interest in Kingfisher Airlines and SpiceJet. The firm holds controlling stake in American Frontier Airlines and Chilean JetSmart. It also has stakes in Mexican airline Volaris and European carrier Wizz Air. This year, the firm announced plans to relaunch an ultra-low-cost-carrier Enerjet in Canada. However, its other major deal this year, to invest in WOW Air, was called off in March.
The Abu Dhabi-based airline has 24 percent stake in Jet Airways, bought in 2013 for $397 million, with an aim to tap into West Asia air traffic. However, its ambition to position the airline's base against rival Emirates' hub in Dubai could not fructify after Jet promoter Naresh Goyal went ahead to tie up with KLM Air France in 2017. Now, with Goyal out of the race, Etihad is looking for a stronger position in deciding the future course of Jet Airways.
The National Investment and Infrastructure Fund (NIIF) is a quasi-sovereign fund, set up by the government of India in 2016, to provide long-term capital for infrastructure projects in the country. The government has 49 percent stake in the fund. It manages $3 billion worth of capital under its three funds-Master Fund, Fund of Funds and Strategic Fund. Its sectorial exposure is across ports and logistics, real estate and renewables. Lately, it has shown interest in supporting airports too.