Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Macharia added that evacuation planes need to inform the government 72 hours before coming to the country and must not have any passengers on board./CFM

Kenya

KQ share price jumps from Sh2 to Sh12 after two week break

The 14-day break was to allow a share split and consolidation of the company’ stock as part of the airlines capital restructuring plan/FILE

NAIROBI, Kenya, Nov 29 – Kenya Airways PLC share price has gone up 135.5 percent to Sh12 after it reopened today at Sh2 following two weeks of temporary suspension to enable a share split and consolidation of the company’ stock as part of the airlines capital restructuring plan.

The restructuring saw the Government increase its shareholding to 48.9 percent of the ordinary voting shares with a consortium of local banks through a special purpose vehicle – KQ Lenders Company 2017 Ltd – now owning 38.1 per cent shares of the airline after having a combined debt of Sh17 billion converted to equity in KQ.

KLM saw its shareholding whittled down to 7.8 percent and the balance – 5.2 percent – shared between other shareholders and a new employee share ownership Plan (ESOP).

Speaking during the bell ringing ceremony to commence the relisting of the shares at the NSE trading floor, Kenya Airways Chief Executive Officer Sebastian Mikosz said the relisting of the firms’ shares demonstrates another step towards securing the airlines growth that will be anchored by operational efficiency and financial sustainability.

“The restructuring makes us competitive and sets us on a path of profitability with a healthy liquidity. We appreciate all the work that went into ensuring we continue to turn around this airline and secure its future,” he said.

The firm posted a Sh3.8 billion net loss for the six months to September, a 20.5 percent reduction of their losses same period last year of Sh4.78 billion.

This was attributed to the improvement of decreased costs in the period as fleet costs were lower by 21.9 percent while overheads decreased by 8.9 percent.

However, the national carrier made flat revenue in the period under review slightly impacted by the election period.

“We applaud Kenya Airways for boldly using this process of debt-equity restructuring, which we believe will result in the company having a lower debt profile and moving it onto a better financial footing. The company’s continued growth and expansion supported by the capital markets is a fine example of the abundant opportunities our market offers,” said NSE Chief Executive Geoffrey Odundo.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...