TPG Capital eyeing Kingfisher Airlines stake: Report
01 Oct 2008
The private equity firm Texas Pacific Group's TPG Capital was reported to be interested as a potential investors willing to put in over $400 million for a sizeable stake in Vijay Mallya-led Kingfisher Airlines, the Economic Times reported
The business paper reported that TPG has been in talks with Kingfisher for a few months, though there was no certainty of a deal coming through. It reported that Kingfisher Airlines was seeking a valuation of over $1 billion.
However, Kingfisher Airlines chief Vijay Mallya said that he was not in talks with TPG. The newspaper quoted other sources from within the UB Group as saying that talks were indeed in progress, and that the airline was also in discussions with another two potential investors. Around a month ago, Mallya had said he was looking to raise $400 million for Kingfisher Airlines.
TPG's past associations with the aviation industry include investments in Continental Airlines, a failed 2006 bid for Qantas in partnership with Macquarie Bank. Recent losses for the capital company include the evaporation of $1.5 billion with the collapse of US bank Washington Mutual and its sale to JP Morgan.
