Kuwaiti budget carrier Jazeera Airways is the subject of a full takeover by its founding shareholders, through the Boodai Reliance Real Estate Company.
Boodai Reliance is equally co-owned by entrepreneurs Marwan and Jassim Boodai.
It holds a direct 6.84% stake in Jazeera Airways – just over 15 million shares – but also has a further 107.3 million shares as a result of ownership in several companies which, in turn, hold stock in the airline.
This gives Boodai Reliance a 55.6% overall interest in Jazeera Airways.
The company is offering to purchase the remaining 44.4% of the carrier, around 97.6 million shares, at a price of KD1.75.
This equates to a transaction of KD170.88 million ($557 million).
After an improved third-quarter performance, Jazeera’s operating profit at the nine-month mark was up 28% to KD26.5 million while net profit rose 60% to KD23 million.
Boodai Reliance’s offer document says the low-cost carrier – set up in 2004 – is one of its “key achievements”, adding that Jazeera has captured a “significant share” of the Kuwaiti aviation market.
Jazeera is “heading toward a new era of growth”, it says, with “ambitious expansion plans extending beyond the boundaries of its base in Kuwait”.
It says the airline has orders for 28 Airbus A320neo and A321neo aircraft, two of which have been delivered, with the rest arriving from 2027 – doubling the carrier’s fleet to 40 by 2030.
“This fleet expansion grants the company the necessary flexibility to launch new medium and long-haul routes across Europe, South and Central Asia, and Africa,” the document adds.
Boodai Reliance says it has “strong reputation” for financial capabilities, disciplined management, and an ability to establish and grow successful businesses. Its diverse portfolio includes travel and tourism, public transport, media, engineering and real estate.
It says it will fund the Jazeera share acquisition through its own resources as well as bank facilities.
