UK aerospace firm BAE Systems is selling its remaining interest in Kazakh operator Air Astana Group, divesting the entire shareholding, nearly 6.9%, to institutional investors.

BAE Systems was a founding partner of Air Astana, which was set up as a joint venture in 2001.

It initially held 49% of the company with the Kazakh government taking the other 51% through its Samruk-Kazyna sovereign fund.

BAE retained the shareholding for more than two decades before Air Astana underwent an initial public offering in February 2024.

The UK company partly divested its share – its interest falling from 49% to about 17% – and the sale generated a profit of £75 million ($99 million).

BAE opted to sell an additional 10.1% share in December last year, through the disposal of 9 million global depositary receipts at $5.80 each, and on 18 March stated that it had agreed to sell its remaining 6.1 million receipts, about 6.9% of Air Astana, at a price of $5.10.

“Following the placing [BAE] will no longer hold any [global depositary receipts] or shares in [the airline],” it confirms.

Air Astana Group says BAE has been a “key partner” of the company since its inception.

“We recognise that Air Astana was no longer a core holding in the context of their wider operations and we look forward to welcoming new shareholders to the group at this exciting point in our development,” it adds.