
Blackstone returns after eight years: Acquisition of Trans Maldivian Airways for $500 million
Blackstone, the world's largest private equity fund, is reportedly close to completing a $500 million investment to acquire control of Trans Maldivian Airways (TMA), the world's largest seaplane operator. Blackstone's return to TMA after eight years is a remarkable move, as it played a significant role in the company between 2013 and 2017. The acquisition comes as the Maldives tourism industry is recovering from the impact of the COVID-19 pandemic and is back on track for growth. Blackstone is now acquiring TMA for almost the same price at which it sold its shares in 2017. Reviving a Business However, economic conditions have changed dramatically since Blackstone sold its majority stake in TMA to a consortium led by Bain Capital and Chinese conglomerate Shenzhen Tempus Global Business Services Holdings. In the period following the sale, the aviation industry was severely impacted by the global health crisis. Tourism, a key driver for TMA, experienced a dramatic decline due to the pandemic, which also affected the company's value. According to reports from India's Economic Times, Blackstone now appears willing to pay the same amount as in 2017 – around $500 million – to acquire a majority stake in TMA. This could be interpreted as a kind of "buyback" of the company, which originally cost Blackstone $98 million. The decision by Bain and its Chinese partners to acquire TMA at the time was a response to the booming luxury and tourism market in the Maldives, which had been growing rapidly until the outbreak.