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Top buyout firms in race for debt-laden Jet Airways; foreign investor eyes Future Retail
Photo Credit: Shah Junaid/VCCircle

Private-sector carrier Jet Airways is in stake sale talks with private equity firms to raise $350-400 million, a report in The Economic Times stated.

Citing many people in the know, the report said that the airline has initiated discussions with Blackstone, TPG and Indigo Capital Partners.

Jet Airways is also planning to monetise its frequent flyer programme Jet Privilege which it co-owns with Etihad Airways, the report said.  

The capital raise comes at a time when the airline is struggling to survive amid debt repayments. It plans to secure the funds by issuing new shares and has also approached other airline partners for the same, the report added.

As on 30 June 2018, Jet Airways’ chairman and founder Naresh Goyal held a 51% stake, while Abu Dhabi-based Etihad Airways owned 24% of the airline.

Future Retail to get foreign investor

Kishore Biyani-led Future Retail Ltd could get a foreign investor in the next two months, The Economic Times reported.

Core to the deal is the consumer data that Future Group has amassed based on store visits, the report added. The identity of the investor was not disclosed.

Since India does not permit overseas investment in multi-brand retail, the foreign portfolio investor (FPI) route is the only solution available for Future Group, the ET report said.

Future Retail operates retail chains under Big Bazaar and Hypercity and also runs electronics chain Ezone.

Over the past few years, Future Group has acquired a number of retail chains across the country, including Raheja’s Hypercity Retail in 2017, convenience store chain Big Apple in 2012, and Nilgiri’s, a south India-based chain, in November 2014.

Kraft Heinz India to sell Complan

US-based food and beverage major The Kraft Heinz Company is expected to receive binding bids from strategic buyers ITC, Wipro Consumer Care & Lighting, and Cadila Healthcare for its milk-based nutritional beverage brand Complan, Mint reported citing two people aware of the development.

The bids could be in the range of $700-800 million, the report added.

Kraft Heinz has mandated investment banks JPMorgan and Lazard to advise on the sale, according to the report.

Kraft Heinz’s brands in India include Complan, Glucon-D, Nycil, Heinz and Sampriti Ghee.

The development comes after GlaxoSmithKline initiated a strategic review of its milk drinks brand Horlicks, which competes with Complan, and its other consumer healthcare nutrition products. The review is part of GSK’s $13-billion deal to buy Novartis’ 36.5% stake in their consumer healthcare joint venture.

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