Kuwaiti budget carrier Jazeera Airways’ board has recommended that shareholders accept a proposed takeover offer by Boodai Reliance Real Estate.
Boodai Reliance already effectively holds a majority of around 56% in Jazeera, either directly or through indirect interests.
It has proposed acquiring the remaining share capital, offering a price of KD1.75 ($5.70) per share.
The airline’s board says it has reviewed an investment adviser’s report which estimated a fair value for the company’s stock at KD1.672 as of 30 September.
Boodai Reliance’s offer is 4.7% above this estimated value, the carrier states.
“Accordingly the board of directors recommends that the shareholders accept the offer submitted by Boodai Reliance Real Estate,” it adds.
But it points out that the takeover offer is voluntary, and that the decision to accept the offer “rests solely with each individual shareholder”.
Jazeera chair Marwan Boodai and several other directors with interests in Boodai companies recused themselves from the board deliberations which took place on 17 November.
