The Thai Government is to raise the limit on foreign ownership of Thai Airways International to 25%, as part of a planned increase in the flag carrier's publicly floated stock by the end of the year.
The finance ministry has revived long-stalled plans to begin divesting its interest in Thai, in an effort to boost foreign investment in the country. The Government plans to sell part of its 93%holding to raise cash, while another 100 million shares will be issued, helping to generate capital to underwrite Thai's fleet-modernisation programme. The airline is to receive 17 new aircraft between September 1997 and October 1998.
The sale, which is expected to be completed by mid-November, would see the Government's holding reduced to 76.8%. Longer-term plans call for a further cut to 43% with the sale of another 500 million shares in 1999 and 2000.
Source: Flight International