TPG Capital joins race to buy stake in Jet Privilege at $400 mn: Report

Private equity firm TPG Capital is looking to buy a stake in the frequent-flyer loyalty programme of debt-laden carrier Jet Airways (India) Ltd, the Mint newspaper reported on Monday, citing sources.

Jet has appointed Morgan Stanley to advise on the potential deal, Mint reported.

The deal with TPG could value the loyalty programme, Jet Privilege Private Ltd, at $400 million, the newspaper said, adding that Jet continues to engage with Blackstone Group for a similar deal.

The deal with Blackstone could value the programme between Rs 30 billion ($428.02 million) and Rs 40 billion rupees and would be dependant on Jet Airways securing adequate funding for its airline operations, Bloomberg reported last week.

The airline, which is part-owned by Etihad Airways, told stock exchanges last week it continues to "evaluate all possible alternatives to ensure optimum utilisation of its fleet".

Jet and TPG Capital did not respond to a request for comment while Blackstone and Morgan Stanley were not available outside business hours.