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The Kuwaiti government supports the new law for the privatization of the airline
24/04/2012 0:12
Kuwait - Reuters
reported the Kuwait News Agency (KUNA) that the Kuwaiti government agreed on Sunday on a project to amend the law paves the way for the privatization of Kuwait Airways Corporation within three years after he led restructuring in the company facing difficulties to block the original plan. In 2008 Kuwait's parliament approved initially on a plan to privatize Kuwait Airways by loss-making but the process stalled repeatedly. The last time was postponed by the Committee responsible for the privatization plan in November, where she said that the company will focus on restructuring first. Said «Kona» that under the new project, to be approved by parliament by the government intends to display the share by 35 percent of the company on companies registered in the Stock Exchange of the country and the companies «specialized» local and foreign. It quoted Minister of Communications Salem Alavena saying that this sale is the path of Bid must be completed within three years. The agency added that »Bid anchored on who offers the highest price per share above the value adopted in the conditions of Bid or may dispose of such shares before the lapse of three years from the date of docking auction ».
She explained that the name of the institution will change to become a shareholding company name »Kuwait Airways Corporation» which «accrue to them all the physical assets and intangible».
The agency said that »the ratio of 20 percent of the the company's capital to government bodies specified by the Council of Ministers »distributed in the proportion of five percent for free and equally to the remaining Kuwaiti workers in the company, adding that» may not be disposed in these shares before one year from the date of the auction landing ». Will be distributed 40 percent in the same way on the Kuwaiti citizens registered their names in the General Authority for Civil Information. They may not dispose of these shares before one year from the date of docking of the auction. The original plan proposes to sell 40 per cent to the citizens. As expected the price up to about $ 282 million compared to 35 per cent offered for sale to an investor in the long run is what he sees as some of the local price greater than necessary ». Agency did not give any estimates of the price. The agency said the Kuwaiti workers in the organization who do not want to move to a new company or to the government sector will receive a bonus equivalent to the end of the service overall salary for three years on the basis of last salary they Atkadouna in the organization.
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