NICHOLAS IONIDES / SINGAPORE
Thai Airways International has edged closer to a long-delayed further partial privatisation with shareholder approval for the issue of 300 million new shares. As the finance ministry has promised to sell 100 million existing shares, the state's holding in Thai will be reduced to 70%.
Approval was secured at an extraordinary shareholders' meeting at the end of August, allowing the airline to issue the shares in one tranche or in several batches. Most will be earmarked for public purchase although some are due to go to employees.
Thai is currently 93% owned by the government, with the remainder traded on the Thai stock exchange.
The government undertook to privatise Thai Airways in exchange for an International Monetary Fund bailout after the Asian financial crisis in 1997. It has repeatedly deferred a further privatisation but a new administration installed early last year has pledged to go ahead late this year or early in 2003. Thai does not say where privatisation proceeds will go, but cash will be needed as the heavily indebted airline is planning a major fleet expansion and modernisation.
The further privatisation should see 285 million new shares available for public purchase and 15 million allocated to airline employees.
The government said nearly five years ago that it aimed to cut its holding in Thai to 70% by selling a 10% stake to a strategic partner or partners, 8% to investors through an initial public offering and 5% to employees.
The plan has been changed several times, however, and there are now no apparent plans to sell to a strategic airline partner.
Source: Flight International
