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Sun 11 Apr 2010 12:13 PM

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Jazeera Airways eyes 91% increase in capital

Low-cost airline plans to sell 200 million shares as it looks for acquisitions.

Kuwait's carrier Jazeera Airways, which is considering acquisitions, plans to raise its capital by 91 percent through a rights issue, the company said on Sunday.

The low-cost airline's board has decided to recommend to shareholders a 20 million dinars ($69.28 million) capital hike by selling additional 200 million shares, it said in a statement on the Kuwaiti bourse.

The raise would bring Jazeera's capital to 42 million dinars. The firm will issue shares at 150 fils per share, including a 50 fils premium. There are 1,000 fils to the dinar.

The airline said in February it has fully acquired Sahab Aircraft Leasing Co, a leasing firm lunched in 2008, for 25.6 million dinars.

The firm's chief executive told Reuters in January that it was eyeing acquisitions in the Middle East.

Jazeera, which competes with UAE-based carriers Air Arabia and flydubai, has a firm order for 29 Airbus A320 aircraft and currently operates 11 planes across the Middle East and Egypt.

Jazeera stock was trading down 3 percent in Kuwait trading. (Reuters)

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