MAI deal waits approval

The deal to privatise Myanmar Airways International is still awaiting government approval according to a reliable source in Yangon.

The source said Kanbawsa Bank had already submitted the take-over proposal to the government, but was still waiting for the green light.

However, the source confirmed financial details in the proposal that stated the government would retain only a minority stake in the airline, while between 70% to 80% of the shares would go to the private sector bank. It would need to buy out the entire stock held by Region Air and acquire most of the shares held by the national airline Myanmar Airways  held on behalf the government.

Earlier this month, a newswire report stated that Myanmar Airways International had been privatised after a private bank, Kanbawza, bought 80% of its shares, while state-owned Myanmar Airways retained just 20% shares. (see http://www.ttrweekly.com/site/2010/02/mai-may-have-changed-hands/)