Kuwaiti logistics firm Agility, facing US fraud charges over military supply contracts, said the government wants to dismiss the indictment against one of its subsidiaries.

"The United States Attorney's Office in Atlanta moved to dismiss the indictment against Holdings, an Agility subsidiary," the firm said in a statement to the Dubai bourse on Wednesday.

"While the prosecutors' motives for seeking this dismissal at this time are unknown this request for dismissal comes after motions filed by Holdings to discover the government's evidence against it."

In April, Agility DGS Holdings, which is Agility's US subsidiary, pleaded not guilty to the sealed indictment.

Agility, formerly Public Warehousing Company (PWC), is in talks with US authorities over accusations it defrauded the military in the Middle East on multibillion-dollar supply contracts spanning 41 months.

Gulf state Kuwait has become a major logistics base for the American military since the US invasion of Iraq in 2003. Agility's shares were suspended from trading on the Kuwaiti bourse on Wednesday pending news clarification, the bourse said.-Reuters