Tuesday, February 19, 2013

Privatization lift-off nears in Kuwait – NA panel to clear way soon


A recent decision by a parliamentary committee is expected to clear the way for the privatisation of Kuwait’s national airline, which in turn could reinvigorate a long-stalled program to open up ownership of other state enterprises – or at least parts of them – to the private sector. In early January the National Assembly announced it had approved the privatisation of Kuwait Airways. Exact details of the planned sell-off were not released, though international media cited officials as saying there had been no changes to earlier plans for the division of shares.

Under a privatisation law on Kuwait Airways passed in May, 35% of shares in a public-sector asset that is being opened to private ownership is to be sold at auction to private or foreign investors. A further 40% would be allocated for sale to Kuwaiti nationals through an initial public offering (IPO), with the state retaining a 20% holding in the company and the remaining 5% being distributed to employees of Kuwait Airways.

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