Turkey's Privatisation Administration (OIB) has called for bids for the purchase of a 51% stake in flag carrier THY Turkish Airlines. Offers must be submitted by 28 February, and OIB aims to complete the sale by April. The Algerian Government has started a similar process.
Foreign investors may bid for a maximum 24% share in THY, with the majority of the 51% stake earmarked for Turkish companies. International and local companies are expected to bid in partnership, according to the Middle East Economic Digest.
The Turkish Government, which now owns 98% of THY, is also expected to float a proportion of its holding in an initial public offering before the end of the year. Following the IPO the state will retain a 'golden share', one seat on the seven-member board and certain ownership rights. OIB is being advised on the sale by Credit Suisse First Boston and local company Yapi Kredi Yatirim.
• The Algerian Government has invited expressions of interest by 15 January for a consulting contract to advise on the possible privatisation of flag carrier Air Algerie. The successful bidder will study the carrier's financial position and recommend strategies for offering shares to private investors.
Air Algerie is one of several state assets targeted for privatisation, the World Bank having lent Algeria $5 million last June to assist in the process. The carrier is undergoing a fleet renewal programme - ordering three Boeing 737-600s and six Boeing 737-800s in July 1998, of which four aircraft have already been delivered.
Source: Flight International
