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Blackstone eyes stake in Jet’s loyalty unit; CPPIB may invest $500 mn in Mytrah
Photo Credit: Manni Das/VCCircle

Private equity major Blackstone Group LP is in talks to pick up a stake in the loyalty arm of cash-starved Jet Airways India Ltd, Bloomberg reported, citing people aware of the development.

The deal, if it goes through, could value Jet Privilege at Rs 3,000-4,000 crore, the report said.

However, Jet Airways is looking to sell the stake at a higher valuation.

Jet Airways owns Jet Privilege with Abu Dhabi-based Etihad Airways. Etihad owns 50.1% stake and the remaining stake is held by Jet.
Etihad picked up the stake for $150 million in 2013.

Separately, Canada Pension Plan Investment Board (CPPIB), the largest among its peers in the North American nation, is expected to invest at least $500 million in renewable energy producer Mytrah Energy, Mint reported, citing two people aware of the development.

Mytrah may use a part of the funding to repay the $277 million debt it raised from business conglomerate Piramal Group, the report said.

The remaining funds could be used for business growth, the report added.

CPPIB may pick up a majority stake in Mytrah but the deal is not yet closed, according to the report.

Mytrah has a portfolio of 2,000 megawatts of operational and under-development renewable power projects across the country, according to its website.

CPPIB has been ramping up its exposure to India. Among its key new investments in 2017-18 is ReNew Power Ltd, where it pumped in $391 million in two tranches. It first invested $144 million in January and then $247 million in April.

In another development, Mumbai-based Allcargo Logistics is in early discussions to acquire a controlling stake in logistics firm Gati Ltd, The Economic Times reported, citing two people aware of the development.

The deal will help Allcargo to expand in express logistics, the report said.

As on 30 June, the promoters held 24.39% stake in Gati and Goldman Sachs 6.93% stake.

In July, the financial daily had reported that the Chennai-based TVS Logistics is in talks to buy a controlling stake in Gati for about Rs 1,500 crore.

Separately, Gujarat State Petroleum Corp. (GSPC) is in talks to sell five blocks to India’s biggest explorer Oil and Natural Gas Corp. (ONGC), Mint reported, citing two people aware of the development.

Of the five blocks, four are in Gujarat’s Cambay basin and one in Mumbai basin, the report said.

Citing a person aware of the development, the report said the sale of the blocks could be part of GSPC’s business restructuring process.

GSPC is planning to sell the blocks by November, according to the report.

In December 2016, ONGC had acquired GSPC’s 80% stake in Deen Dayal West Field in the Krishna-Godavari basin.

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