Oman’s sovereign wealth fund is among the parties in talks to take a shareholding in Indian low-cost airline SpiceJet, it was reported.
Business newspaper LiveMint, citing an individual involved in negotiations, said that Oman Investment Fund was joined by a number of other Middle Eastern funds, foreign airlines and an Indian conglomerate.
Earlier this month Dubai’s Emirates Airline denied reports it was in talks to acquire a stake in the Chennai-based carrier, which has also been linked to tie-ups with Qatar Airways and Kuwait Airways. A deal is said to not be imminent.
“There are a few Middle-Eastern funds, including Oman Investment Fund, currently talking to the company. In all likelihood, it will be a strategic investor who will do the transaction, with backing from PE (private equity) investors,” the source was quoted as saying. “The deal is not near a closure right now. It will take time.”
Oman Investment Fund currently has about $6bn worth of assets under management. It invests in sectors including transport, telecommunications and utilities.
Debt-laden SpiceJet’s CEO Neil Mills resigned last month, bolstering speculation that the carrier’s shareholders were paving the way for a tie-up with a third party airline.
Mills told Arabian Business last year that SpiceJet had held preliminary talks with unspecified Gulf carriers.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.