A Nepalese insurance company has acquired a 49% stake in Yeti Airlines (YT, Kathmandu). Kathmandu-based Asian Life Insurance paid NPR 1.75 billion (USD 13.2 million) for the stake, which comes ahead of an expected initial public offering (IPO) on the Nepal Stock Exchange (NEPSE).
The Nepali-language Bizness News reports on the transaction, which has been independently verified by ch-aviation. The insurance company paid a 70% premium for the shares held by the Sherpa family, which had a paper value of NPR 100 (USD 0.75). Asian Life Insurance will take over the day-to-day running of the airline and recently appointed Subhas Sapkota as its new Chief Executive Officer.
Angchiring Sherpa founded Yeti Airlines in 1998. The airline now flies to 12 destinations within Nepal with a fleet of five ATR72-500s and three Twin Otters – two DHC-6-400s and one DHC-6-300 – all operated by subsidiary Tara Air. Yeti Airlines has never been profitable, but it complements and is cross-subsidised by the Sherpa family’s extensive business interests in tourism and hospitality. In addition to Yeti Airlines, the Sherpa’s have interests in trekking companies, hotels and are general agents for Thai Lion Air, Malindo Air and Kuwait Airways. Angchiring Sherpa died in a helicopter accident in February 2019, and his brother, Lakpa Sonam Sherpa, is now at the forefront of the family’s interests. ch-aviation understands that the family is keen to cash out of the loss-making airline, and was a willing seller to Asian Life Insurance, which is actively promoting the impending IPO.
Asian Life Insurance is a private company established in 2008. Its CEO is Dinesh Lal Shrestha, who has a background in banking and life insurance. According to the insurance company’s website, its authorised capital is NPR 5 billion (USD 37.7 billion) and paid-up capital is USD 21.8 million. The company has life insurance funds totalling NPR 34 billion (USD 356.1 million). Asian Life Insurance will also manage the IPO process, which is expected to take place within 12 months of receiving the relevant regulatory approvals.
