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Botswana puts airline on sale in 1st privatisation

JOHANNESBURG: The Botswana government invited international airlines on Monday to signal if they were interested in buying a stake in Air Botswana in what the diamond-rich country hopes will be its first big privatisation.

In a "Request for Expressions of Interest" announcement in South African newspapers, the International Finance Corp (IFC) and Botswana said the government wanted to sell up to 49 percent of the airline to a strategic equity partner.

It also wants to sell up to 10 percent to staff. After that it plans an initial public offering of some of the carrier's shares.

Apart from domestic flights, where it has a monopoly, Air Botswana also flies to a few regional centres, like Johannesburg and Harare.

The carrier has four planes - three that seat fewer than 50 passengers each, and one which seats around 90.

"The bidding process will be on a competitive and transparent basis with the transaction closing anticipated during the latter half of 2003," the announcement said.

The IFC, the investment bank arm of the World Bank, is the lead consultant to the government on the privatisation. -Reuters