blueside^
23rd Jan 2008, 17:29
by Joel Bowman on Wednesday, 23 January 2008
http://www.arabianbusiness.com/images/magazines/arabianbusiness.com/web/emiratesair_thumb.jpg
Dubai-owned Emirates airline will go ahead with in initial public offering (IPO) in the "next couple of years" and is looking at selling up to 30% of the company, its chairman said in comments published on Wednesday.
"...it has to happen in the next couple of years. I am sure it will happen. We are talking about selling 20 to 30% of the company within the region," Sheikh Ahmed bin Saeed Al Maktoum said in an interview with UAE daily Emirates Business 24/7.
Sheikh Ahmed's comment that the airline is looking to list "within the region" could mean it may opt to list solely on Dubai International Financial Exchange (DIFX) rather than a joint listing on the DIFX and London Stock Exchange (LSE), which has been suggested by some analysts.
Any IPO would value the airline at up to $30 billion, based on multiples and profitability, president Tim Clark said in October when news of a possible listing first surfaced.
Sheikh Ahmed said the decision as to if and when Emirates would list rested with the Dubai government, adding that it would take a further year or two to launch the IPO once the airline had been given the go ahead.
"From the day the government presses the button to go ahead, it will take us another year or two to launch the IPO," he said.
Sheikh Ahmed said Emirates had no plans to invest in any other airlines at the moment following the collapse of its relationship with SriLankan Airlines.
"We have no plans at all to pick up a stake in any other airline. But in the next six months or the next year, if there is a good opportunity that we would not want to miss out on, then we will make the call," he said.
Emirates said earlier this month it would not renew its contract to manage SriLankan, which expires in March, and was looking to sell its 43.6% stake in the airline after the South Asian island's government sought greater control over its day-to-day business.
Clark said at the time Emirates' stake was worth around $150 million, and Sheikh Ahmed said the airline would like to sell the stake at that price.
Asked how comfortable Emirates was about a rival such as Qatar Airways buying its stake, Sheikh Ahmed said: "We would support whoever in the region would like to buy the stake from us."
Sheikh Ahmed also said he was hopeful Emirates would cross the $1 billion profit mark this financial year, but cautioned that high oil prices could have an impact.
http://www.arabianbusiness.com/images/magazines/arabianbusiness.com/web/emiratesair_thumb.jpg
Dubai-owned Emirates airline will go ahead with in initial public offering (IPO) in the "next couple of years" and is looking at selling up to 30% of the company, its chairman said in comments published on Wednesday.
"...it has to happen in the next couple of years. I am sure it will happen. We are talking about selling 20 to 30% of the company within the region," Sheikh Ahmed bin Saeed Al Maktoum said in an interview with UAE daily Emirates Business 24/7.
Sheikh Ahmed's comment that the airline is looking to list "within the region" could mean it may opt to list solely on Dubai International Financial Exchange (DIFX) rather than a joint listing on the DIFX and London Stock Exchange (LSE), which has been suggested by some analysts.
Any IPO would value the airline at up to $30 billion, based on multiples and profitability, president Tim Clark said in October when news of a possible listing first surfaced.
Sheikh Ahmed said the decision as to if and when Emirates would list rested with the Dubai government, adding that it would take a further year or two to launch the IPO once the airline had been given the go ahead.
"From the day the government presses the button to go ahead, it will take us another year or two to launch the IPO," he said.
Sheikh Ahmed said Emirates had no plans to invest in any other airlines at the moment following the collapse of its relationship with SriLankan Airlines.
"We have no plans at all to pick up a stake in any other airline. But in the next six months or the next year, if there is a good opportunity that we would not want to miss out on, then we will make the call," he said.
Emirates said earlier this month it would not renew its contract to manage SriLankan, which expires in March, and was looking to sell its 43.6% stake in the airline after the South Asian island's government sought greater control over its day-to-day business.
Clark said at the time Emirates' stake was worth around $150 million, and Sheikh Ahmed said the airline would like to sell the stake at that price.
Asked how comfortable Emirates was about a rival such as Qatar Airways buying its stake, Sheikh Ahmed said: "We would support whoever in the region would like to buy the stake from us."
Sheikh Ahmed also said he was hopeful Emirates would cross the $1 billion profit mark this financial year, but cautioned that high oil prices could have an impact.