The sale process for Ticketek (Ticketek Pty Ltd) owner TEG Group (TEG Pty Limited) appears to have stalled, but even if it were going ahead, a deal may now look more tricky for beleaguered national carrier Qantas Airways Limited (ASX:QAN). As the controversy surrounding Qantas hit fever pitch on 05 September 2023, with the departure of Chief Executive Officer Alan Joyce brought forward, market observers believe the way forward for Qantas now is to repair its reputation among its customers. It is likely to mean any spending on acquisitions will be stalled, and funds will instead be directed at flight specials to win back the loyalty of its customers, rewards and marketing.

Qantas was partnering with Kohlberg Kravis Roberts (KKR & Co. Inc. (NYSE:KKR)) in a quest to buy TEG Group, which would have been highly complementary to its Qantas Frequent Flyer program. The understanding was that Qantas was only ever looking to contribute a small amount of equity or else provide simply strategic benefits on a deal for KKR, but nevertheless, future spending on acquisitions for this business in the coming months will not be seen as a good look.

The understanding is that the Jefferies-advised sale process for TEG that was launched in recent months is now drifting sideways, with the two main contenders, Blackstone and KKR-Qantas duo, both having downed pens. The problem is that while suitors would likely be prepared to pay more than $2 billion for the company, expectations of owner Silver Lake (Silver Lake Technology Management, L.L.C.) are somewhere between $2.5 billion to $3 billion.