Beirut: At least six banks have expressed interest in managing a partial initial public offering in Lebanon's national carrier Middle East Airlines later this year, Central Bank Governor Riad Salameh said.
"At least one regional investment bank, two international investment banks, and three local banks have expressed an interest to manage this IPO," Salameh said in an interview yesterday in Beirut, where MEA is based.
An announcement on who will manage the sale of a 25 per cent stake in the carrier should take place by the end of June once banks have completed due diligence and board members of the central bank meet, Salameh said.
The carrier is valued at at least $1 billion (Dh3.67 billion) and the sale of the stake by the end of this year should raise $250 million, Salameh said yesterday. No investor will be allowed to own more than 1 per cent in order to guarantee broad ownership of the shares, which will be listed on Lebanon's stock exchange, he also said. MEA dominated international passenger travel in the region before Lebanon's civil war from 1975 to 1990. The carrier, founded in 1945, is owned by the Central Bank after its rescue from bankruptcy in 1996 and had a $100 million profit last year.
"Unless there is an extraordinary event happening, whether in the financial markets or related to security, we want to do this deal," Salameh said. "It's in the interest of the country to have a central bank that remains independent and not be dragged into non-core issues."
The global financial crisis, internal political upheaval and a one-month war with Israel in 2006 slowed the share-sale plan to date, Salameh said. Lebanon formed a new government in November, defusing political turbulence.
The IPO of MEA is "long overdue and the markets will welcome this step because it sends a clear signal to the international community that Lebanon is serious about reform", said Nassib Gobril, head of research at Byblos Bank.
