Global PE players eye stake in JetLite

Jet is believed to be in talks with leading private equity players.

Naresh Goyal-promoted Jet Airways is believed to be in preliminary talks with leading international private equity players for offloading a minority stake in JetLite, the name given to Air Sahara that it acquired three months ago for Rs 1,450 crore.

Global investment companies and equity funds like Dubai-based Istithmar PSJC, US private equity firms Texas Pacific Group and Blackstone and Singapore's investment holding company Temasek Holdings have been approached by merchant bankers associated with the talks.

Sources close to the development said Jet Airways, which is readying itself for a $400 million rights issue to fund its expansion plans, may dilute up to 25 per cent in JetLite. Jet Airways Executive Director Saroj Datta, however, denied that talks were on for divesting equity.

Jet Airways has been looking for capital to finance its international operations and aircraft acquisition.

An email sent to Istithmar and Temasek remained unanswered while the other private equity players were not reachable for comment.

Sources said JetLite would be profitable by October-November. The rebranding exercise has begun with Jet Airways integrating Air Sahara's frequent flyer programme.

Meanwhile, the airline has been repositioned as a "value carrier" "" that is, an airline between a low-cost and a full-service carrier. To this end, JetLite has discontinued business class operations from June and re-configured its aircraft to all-economy seats.

Jet executives earlier pointed out that the airline will acquire 10 Boeing 737 aircraft which Air Sahara had committed to buy. The latter had already paid 1 per cent of the bill to the aircraft manufacturer as a pre-delivery payment.