Malawi Airlines’ shares on sale in a year
Malawian Airlines says the Malawi government is expected to sale part of its shareholding in the airline to private investors after a minimum of 12 months of operations of the company.
Malawi Airlines’ Public Relations Officer, Maganizo Mazeze, told The Business Times in Lilongwe that the Malawi government undertook to sell 31 percent of its 51 percent stake in the airline to private investors at an appropriate time.
“The process of offering the shares, as per the shareholders agreement, will be effected after a minimum of twelve months of operations of the company,” said Mazeze in an emailed response to a questionnaire.
He said based on the current capitalisation of the airline, the 31 percent shareholding could earn the Malawi government US$6 million (K2.7 billion) when sold. Apart from the 51 percent shareholding owned by the Malawi government, Ethiopian Airlines, the strategic partner, holds the remaining 49 percent equity.
After the disposal of part of its stake to private investors, the Malawi government is expected to remain with 20 percent in the company. The government injected US$12 million as capital in the company as its major shareholder contribution while Ethiopian Airlines will bring in two aircrafts, the Bombardier Q400 and Boeing 737 800, as its investment in the company.
The airline has since started local flights on the Lilongwe- Blantyre route, with plans to launch regional flights in the coming weeks. Malawian Airlines was established following liquidation of the wholly government owned Air Malawi in 2012.