The Bangladeshi Government is seeking to revive stalled efforts to partially privatise Biman Bangladesh Airlines by pledging to give up majority ownership.
Cash-strapped Biman has been working on its privatisation for more than a year but has failed to draw much interest. It says only Gulf Air expressed interest in the 40% stake on offer to a foreign partner but the government rejected the bid because it is considered a competitor.
Biman's financial advisers have begun a new search for partners after the government agreed to amend the terms of the offering. Under the revised plan, 40% will still be offered to foreign carriers but financial institutions will also be able to bid. Employees will still be offered 9%, but 11% will be offered to non-resident Bangladeshis. Biman says the government hopes giving up majority control will make the airline a more attractive buy, particularly to financial institutions.
Source: Airline Business