Kuwait Air seeks bids for stake sale
Kuwait, August 1, 2011
The privatisation committee of Kuwait Airways asked potential investors to submit their interest in buying a stake in the carrier, the first step towards privatising the state-owned carrier.
'Interested parties will have an opportunity to subscribe to 35 per cent of the predetermined share capital of ... 220 million dinars ($805.3 million),' the committee said in a statement, setting August 25 as the deadline for submission.
A potential stake sale would be the first privatisation of a Gulf-owned carrier.
Last year, Kuwait appointed Citigroup, auditors Ernst & Young and aviation consulting firm Seabury to handle the privatisation of its national carrier, which has a fleet of 17 planes.
Joint-stock companies listed on the Kuwaiti bourse and 'specialised' international firms are allowed to subscribe, the statement added.
Kuwait's parliament approved a plan in 2008 to privatise loss-making Kuwait Airways Corp. Under the plan, the government will sell 40 percent of the airline to the public and 35 percent to a long-term investor. - Reuters