Carlyle seeking investors to sell TMA for USD 700 million

Carlyle Group, the majority shareholder of the world's largest seaplane operator, Trans Maldivian Airways (TMA), is looking for investors to sell the company for USD 700 million.

In addition to Carlyle, TMA's majority shareholders include King Street Capital Management (King Street) and Davidson Kempner Capital Management LP (Davidson Kempner). First phase discussions are underway with the companies for the sale of TMA.

While Carlyle has begun discussion with investors, the company has not revealed further details about the matter. The transactions are expected to be conducted as a private sale.

TMA has faced difficulties in paying off its debts due to the Covid-19 pandemic. While TMA faced difficulties in repaying loans worth USD 305 million (MVR 4.7 billion), the debt was restructured and the majority stake of TMA was purchased by Carlyle Group last year.

The unpaid loan was borrowed by the company's then majority shareholder Bain Capital in 2017 to acquire TMA.

TMA was acquired at USD 500 million (MVR 7 billion) from Blackstone in 2017. USD 305 million was allocated to Bain Capital of the United States and Tempus Group Co. of China in collaboration with several private individuals who funded the investment.

TMA's seaplane fleet currently consists of 56 vessels. The company also operates flights to 80 resorts in Maldives including some of the most luxurious destinations of the country.

TMA being the largest seaplane operator in the world, has expanded significantly in the past 30 years.