Blackstone is in final talks to reacquire amphibious aircraft operator Trans Maldivian Airways (TMW, Malé) eight years after divesting, according to India's Economic Times. The report says that the world's biggest private equity company will pay around USD500 million to get back into the seaplane business - a similar price to what it was paid when it sold out to Bain Capital LP and Shenzhen Tempus Global Business Services Holdings Ltd in 2017.
Trans Maldivian Airways is the world's largest amphibious aircraft operator. According to ch-aviation fleets data, it operates fifty-nine DHC-6-300s, three DHC-6-400s, two DHC-6-200s, and one DHC-6-100. It specialises in ferrying guests to and from resorts scattered around the Maldives. ch-aviation flagged the possible sale late last year.
Blackstone owned Trans Maldivian Airways between 2013 and 2017 and made a near five-fold return when it sold out. Bain Capital and Shenzhen Tempus were not so lucky. The consortium had hoped to capitalise on the increasing flow of passengers and money to the Maldives, but the COVID-19 pandemic curtailed that. Trans Maldivian later defaulted on a USD305 million loan, leading to a group of lenders, led by Carlyle Group, taking control of the carrier in 2021. Other lenders in the group include hedge fund manager King Street Capital Management and investment management firm Davidson Kempner Capital Management.
Tourism to the Maldives is now on the uptick. However, the mooted USD500 million sale price is reportedly at the lower end of expectations. The sellers had hoped for as much as USD700 million. While sale talks took place with other private equity groups, only Blackstone has progressed. Other potential buyers deemed the sector too prone to external shocks.
