The Thai cabinet has approved the sale of a 23% stake in Thai Airways International, endorsing the sale of 100 million shares held by the Ministry of Finance and of 300 million new shares in the airline.
Bangkok owns 93% of Thai, with the rest publicly held. The airline's privatisation has been repeatedly delayed, but the government plans to sell 8% of shares through an initial public offering "within three months". A further 5% is to go to employees via a stock option programme, with 10% reserved for up to two strategic partners.
The share issue is intended to increase the carrier's capital base to 17 billion baht ($450 million). Most global airline alliances have shown interest in investing in Thai - a founder member of the Star Alliance - for increased access to its Bangkok hub. Thai is to review its alliance strategy as part of the privatisation process. It is understood to be unhappy with the admission to Star next month of rival Singapore Airlines.
Source: Flight International
