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TPG Capital in talks to buy stake in Jet Privilege, may invest $100 million

New Delhi: Beleaguered airline Jet Airways may get a lifeline soon, as private equity firm TPG Capital likely considering investing in the Naresh Goyal-led company, news agency Reuters said citing sources having knowledge of the matter. TPG Capital may invest more than $100 million but talks are at an early stage so the size of the stake dilution and investment are not finalised yet, the report further said.TPG is looking to buy a stake in Jet Airways’ frequent-flyer loyalty programme, Jet Privilege, which could be valued at around $400 million. The private equity firm has appointed Morgan Stanley to advise on the potential deal, the Reuters report said.
It may be noted that Jet Airways is already engaged with Blackstone Group for a fundraising exercise. The airline, which is partly owned by Etihad Airways, has accumulated huge debt on its books due to continued losses in its operation on account of higher crude oil and other costs. As of March 2018, Jet Airways had a debt of around Rs 8,150 crore.Worth mentioning that Jet Airways will have to repay about Rs 30 billion or $436 million in loans and bonds over the next three years, the airline also need to infuse capital to continue its day-to-day operations.Earlier, this month according to a Reuters report, Jet Airways told staff it was running out of money although the airline denied this. Jet Airways has also deferred reporting earnings due to which its shares fell to a three-year low, with analysts saying the company urgently needed to recapitalise.On Friday, the beleaguered airline said a meeting of the board of directors will be held on August 27 to consider and approve the unaudited financial results for the first quarter ended June 30.As of 10:15 am, Jet Airways shares traded 2.53 per cent lower at Rs 293.60 a piece compared to Monday’s closing price of Rs 301.20.