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Mon 7 Dec 2015 03:21 PM

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Kuwaiti airline Jazeera says capital reduced to $65.8m

Carrier finalises voluntary capital reduction process to match size of operations following leasing unit exit

Kuwaiti airline Jazeera says capital reduced to $65.8m

Jazeera Airways has announced that it has finalised its voluntary capital reduction process to bring down its capital from KD42 million to KD20 million ($65.8 million) to match the size of its current operations after it exited the aircraft leasing business.

As part of the process, the company will issue cash payouts worth a total KD32.7 million starting Sunday, the company said in a statement.

The KD32.7 million cash payouts include KD22 million for a share buyback program for 220 million shares at a nominal price of 100 fils and KD10.7 million in accumulated profits and other reserves that are required by law to be distributed as part of the capital reduction, it added.

With the last tranche of payments concluding next week, total payouts to Jazeera Airways shareholders in 2015 will reach KD52.7 million, including the KD20 million in special cash dividends distributed June 2015.

Jazeera Airways said the capital reduction payouts will commence on Sunday, via the Kuwait Clearing Company. Accordingly, trading on the Jazeera Airways stock will be suspended on the Kuwait Stock Exchange (KSE) on Wednesday while shareholder records are readjusted to take the capital reduction into consideration.

Trading will resume on Thursday at a new opening price to be determined by the KSE.

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