Bain, Chinese partner Tempus to acquire Trans Maldivian Airways from Blackstone

Global private equity major Bain Capital and its Chinese partner Tempus Group are jointly acquiring Maldives-based seaplane operator Trans Maldivian Airways.

According to an official statement  Bain Capital, Shenzhen Tempus Global Business Services Holdings Ltd and TBRJ Fund 1 LP have formed a consortium to acquire Trans Maldivian Airways.

While the size of the deal was not disclosed, according to news reports the consortium has acquired the seaplane firm from Blackstone for around $550 million.

The two listed companies of Tempus Group, Tempus Global and Tempus Holdings, both participated in the acquisition.

Under the terms of the deal, once the transaction is completed, “the A share-listed Tempus Global will own nearly 5% of TMA through its overseas wholly-owned subsidiary,” Tempus said

“The JV of HK-listed Tempus Holdings, TBRJ Asset Management, will hold approximately 15% stake in TMA through its USD fund TBRJ Fund 1. The rest 80% will be owned by Bain Capital,” it added.

Blackstone had acquired control of two seaplane operators, Maldivian Air Taxi and Trans Maldivian Airways, in 2013 for $98 million and subsequently combined the two.

Founded in 1992, Trans Maldivian Airways has 49 twin otter aircrafts and approximately 900 employees from 20 countries. It claims to conduct around 50,000 flights per year.

“Our partnership with Tempus Group will enable us to capitalize on the growing leisure market in China, one of the world’s largest outbound tourism markets, given the Company’s longstanding operations there,” Drew Chen, a managing director at Bain Capital Private Equity, said.

 The Maldives has attracted investment from Chinese online travel agencies and private equity firms seeking to cater to Chinese holidaymakers, who account for the largest group of tourists on the coral islands. The Maldives is one of the few countries where Chinese tourists are automatically issued a visa on arrival.

The investment in Trans Maldivian Airways, will enable the Chinese firm, which owns tour operator Shenzhen Tempus Global Travel Holdings Ltd, to extend its reach into the high-end tourism market.

“Next year, we plan to launch the charter flight from Shenzhen to Malé, the capital of Maldives. We will communicate with TMA closely. We are optimistic about the synergy between our charter flights and the seaplanes,” said Shujie Wang, the chairman of Tempus Tour.

Trans Maldivian Airways, on the other hand, will get an opportunity to enter Mainland China, Hong Kong and Macau.

(Evangle Luo of TTFLY shared with you)