NAIROBI, Kenya,Sep 14 – The Kenya Airways Board of Directors has issued a cautionary statement to shareholders as it announced plans for a Rights Issue.
The board said it planned to raise its authorised share capital as it awaits regulatory and shareholder approval for the Rights Issue.
The matter is likely to be discussed at the forthcoming Annual General Meeting on October 14.
“Further details of the proposed Rights Issue will be provided in due course. The shareholders of Kenya Airways Limited and the public are advised to exercise caution when dealing in the shares of Kenya Airways Limited,” KQ said in a statement.
The airline has secured the services of CfC Stanbic Bank as their financial adviser and is in the process of seeking other consultants who will also advise on possible arrangements.
Kenya Airways, with 75,000 shareholders, accounts for 60 percent of the air traffic at the Jomo Kenyatta International Airport.
The carrier has not raised capital in the market since it was listed following its privatisation in 1996. The airline has depended on borrowings to finance its expansion strategy especially in the lucrative African region.
Kenya Airways has over the years embarked on an expansion program that has seen it fly directly to over 50 destinations.
The airline has set itself a 10-year expansion program in which it plans to increase its aircraft fleet as well the number of routes.
Kenya Airways also has plans to fly to all African capital cities by the end of 2013.
Directors will determine the size and pricing of the offer at a later date.