TPG Capital joins Blackstone in race to buy stake in Jet Privilege
MUMBAI: US private equity (PE) giant TPG Capital will lock horns with native rival Blackstone Group LP to acquire a significant stake in the frequent-flier loyalty programme of Jet Airways (India) Ltd, said two people directly aware of the matter.
Jet Airways, which owns 49.9% stake in Jet Privilege Pvt. Ltd (JPPL), has appointed Morgan Stanley to advise on a potential deal that could value the privately-held company at $400 million, the people cited above told Mint, on condition of anonymity.
“Discussions with TPG have gained momentum in the past few weeks even as Jet Airways continues to engage with Blackstone for the transaction,” the first person cited above said.
Earlier, Bloomberg had reported on August 16 that global private equity giant Blackstone group has expressed interest in a deal that could value JPPL at about ₹3,000 crore ($429 million) to ₹4,000 crore. Jet Airways had however denied the development saying that reports on any move to monetize its investment in the loyalty programme were “purely speculative.
Emails sent to Jet Airways, Morgan Stanley and Blackstone did not elicit a response until press, while spokesperson of TPG declined requests for comment.
JPPL which houses the frequent flyer programme of Jet Airways was incorporated in 2012 as a wholly owned subsidiary of Jet Airways but was hived off as an independent entity in 2014 after Etihad Airways picked up 50.1% stake in the firm for $ 150 million valuing the firm at around $300 million. Etihad’s investment in JPPL was a part of its overall $600 million investment in the Jet Airways announced in April 2013.