Nearly eight years after selling Trans Maldivian Airways (TMA) to a group led by Bain Capital and the Chinese giant Tempus Group, Blackstone, the largest private equity firm in the world, is currently in the final stages of repurchasing the airline.
A figure that is similar to what Blackstone originally sold it for is anticipated in the sale, according to people with knowledge of the situation. TMA, the biggest seaplane operator in the world, has experienced financial instability, especially during the COVID-19 pandemic, which resulted in bankruptcy and debt reorganization.
Blackstone sold TMA for $500 million in 2017 after first investing $98 million, marking a major withdrawal from its Asian holdings. With a 4.8-fold return, the deal, which involved a total investment of between $115 million to $120 million in debt and equity, was one of Blackstone’s most lucrative exits in the area.
High-end tourists from Asia and Europe were expected to drive significant demand, but the pandemic had a negative effect on business. Lenders took over the business after Bain and Tempus failed on a $305 million loan, which led to a debt restructuring procedure. As a result, a lender consortium including Carlyle, King Street Capital Management, and Davidson Kempner Capital Management (DK) took the lead in the new ownership structure. The debt was first financed by commercial banks including HSBC, Deutsche Bank, and Nomura before being moved to hedge funds and special-situations lending companies. As tourism started to rebound in late 2023, Deutsche Bank was approached to investigate a sale.
TMA’s 2025 yearly revenue was projected by Rocket Reach to be $177.9 million, while industry analysts projected an EBITDA of $70 to $80 million. A number of corporate investors, such as India’s Tata Group and InterGlobe, as well as private equity groups, such as Apollo Global Management, CVC Capital Partners, and Carlyle’s buyout business, were contacted about possible involvement. Due to the aviation industry’s susceptibility to outside shocks like pandemics and economic downturns, many choose to opt out. Interest was still low in the $550 to $700 million valuation range that lenders had anticipated.
Requests for remarks from King Street Capital were not answered, while Blackstone, Carlyle, and DK declined to comment.
