Shareholders of Saudi Arabian Airlines' catering operation are to offer 24.6 million shares, representing 30% of the company, the prospectus for the proposed sale confirms.
The offer period for Saudi Airlines Catering Company begins on 18 June and runs to 24 June.
It is currently 48%-owned by the flag-carrier, while another 49% is held by Strategic Catering Company. Three other firms - Saudia Aviation, Saudia Private Aviation and Saudia Real Estate & Development - each own 1%.
The 30% being offered will comprise 12.3% from the carrier's share and 14.7% from the Strategic Catering share, plus the entire collective 3% of the three smallest stakeholders.
Institutional investors will be offered the entire complement of 24.6 million shares, while individual investors will be offered 50% of them, the prospectus states.
After the sale Saudi Arabian Airlines will hold 35.7% of the catering company, while Strategic Catering will have 34.3%.
Saudi Airlines Catering's current ownership structure emerged from a privatisation initiated in August 2006. Over the course of the next six months 70 interested parties were whittled down to three, and a consortium led by Abdulmohsen Alhokair Group - later known as Strategic Catering - subsequently acquired its 49% share.
The catering company has two main activities, comprising the supply of airlines and the provision of catering to other non-aviation business.
Last year Saudi Airlines Catering achieved a net profit margin of 26% on revenues of SR1.4 billion ($370 million).
Source: Air Transport Intelligence news
