Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

NSE suspends trading in KQ shares for 2 weeks to reorganise ownership

Government will take over effective control of the national carrier by raising its stake to 48 percent of the ordinary shares through conversion of its loans to equity amounting to Sh24 billion/FILE

NAIROBI, Kenya, Nov 15 – The Nairobi Securities Exchange (NSE) has suspended the trading Kenya Airways shares for two weeks to allow new share split deal to take effect.

The suspension is effective November 15th to November 28th, 2017 and has been approved by the Capital Markets Authority.

According to the new deal government will take over effective control of the national carrier by raising its stake to 48 percent of the ordinary shares through conversion of its loans to equity amounting to Sh24 billion while Banks through KQ Lenders Company that compromises of 11 banks takes over 38.1 percent stake in the company through the conversion of their Sh17.3 billion debts to equity.

The move has seen KLM shareholding at KQ diluted further down to 7.8 per cent from 26.7 per cent following the capital optimization plan.

Minority shareholding is now at 5.2 per cent.

The move is intended to bring back KQ to its glory as the pride of Africa after suffering losses in the last three years.

“We are sure of a revival for the airline. We will hold the equity up to 10 years, but we hope that the airline will get back to profitability soon, and then we can get a strategic investor to come in,” Treasury Cabinet Secretary Henry Rotich told journalists on Monday.

The airline cut its loss by 61 percent in 2017 to register a net loss of Sh10.2 billion compared to the Sh26 billion it recorded in 2016.

In May KQ appointed a turnaround CEO Sebastian Mikosz to take over from Ngunze who hired Polish expatriates as part of the airline’s management team in its efforts to return to profitability.

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...

Headlines

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

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...

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

Coronavirus

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

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...