Sunday, Aug 28, 2011
DUBAI (Zawya Dow Jones)--The committee handling the privatization of Kuwait Airways Corp. said Sunday it would start assessing expression of interest documents received by an Aug. 25 deadline from companies interested in taking a strategic stake in the carrier.
The privatization committee, in an emailed statement, confirmed the close of the initial expression of interest, or EOI, phase of the proposed privatization program and said it would work closely with its advisors to assess the EOIs received.
"An update to the market will be provided in due course," the committee said without stating which or how many companies submitted EOIs.
The privatization of Kuwait Airways will involve the sale of a strategic 35% stake to a company listed on the country's stock exchange or a specialized international firm, but the process will exclude any domestic airline operator, the committee announced earlier this month.
Under the privatization plan, that has been in the works for a number of years, the country's sovereign wealth fund will retain a 20% stake in Kuwait Airways, while 40% of the airline will be offered to the public in an initial public share sale on a yet to be determined date.
Kuwait Airways, established in 1954, operates 17 aircraft and controls about 31% of the Kuwait market. In 2010, it made a full-year net loss of $556 million and carried 2.62 million passengers.
-By Oliver Klaus, Dow Jones Newswires; +9714 446-1693; Oliver.Klaus@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
28-08-11 0643GMT
