Texas Pacific among other PE firms in race to acquire Air Deccan stake

US-based private equity giant Texas Pacific Group is among three others who are in talks with low-cost carrier Air Deccan for picking up a minority stake. Air Deccan is planning to raise around $100 mn, to be utilized for expansion, by diluting 5-7% stake to private equity firms, and has mandated Edelweiss Capital (see Related Post) for the same.

Edelweiss has short-listed 3-4 players willing to invest in Air Deccan, and a deal is likely to be signed in the next 10 days. Among them, Texas Pacific has emerged as the most aggressive bidder. Texas Pacific has made investments in airlines globally. However, it had dropped its plans to invest $30 mn in Delhi-based budget carrier SpiceJet owing to differences in valuation.

Indian airliners are tapping private equity avenues for shoring up capital to strengthen their balance sheets and to meet their expansion needs. SpiceJet has raised nearly Rs. 300 crores from private equity firms, while the Chennai-based Paramount Airways has managed to get over Rs. 80 crores. Meanwhile, full-service carriers such as Kingfisher Airlines and Jet Airways are also in talks with private equity for raising funds.

Read the article in the Business Standard.
Related Post:
Texas Pacific pulls out of investing in SpiceJet

Air Deccan seeks $75-100 mn private equity; hires Edelweiss for PE syndication

Air Deccan is planning to raise around $75-100 mn for its expansion plans, and has reportedly approached the Reliance ADAG Group and a Delhi-based conglomerate for the same. Investment bank Edelweiss Capital has been mandated by the low-cost airline to help raise private equity. Texas Pacific Group, Carlyle Group, Standard Chartered Private Equity, Macquarie Capital, ChrysCapital, Lehman Brothers, General Atlantic and GIC of Singapore are some of the investment firms that have been sounded out. The process is expected to be completed over the next three months.

Additionally, Air Deccan is also looking to raise money by securitizing its future receivables or by issuing bonds, and is in talks with global players like International Lease and Finance Corporation (ILFC) and GE Commercial Aviation Services (GECAS).

Read the complete article in The Economic Times.