NAIROBI, Kenya July 7- Kenya Airways has been suspended from trading it shares at the Nairobi Secuities Exchange ahead of its buyout by the government which is awaiting deliberation by Parliament.
The National Aviation Management Bill 2020 has been tabled in Parliament for guidance on the buyout of minority shares at the airline from individual shareholders, Air France KLM and local banks.
Through a statement, NSE clarified that the suspension will remain in effect for three months until the resolution of the future of the firm is determined.
“The company’s operational and corporate restructure and Government buy-out is now imminent following the publication of the National Management Aviation Bill, 2020, on 18th June 2020,” said NSE.
“Consequently, the company has applied for suspension of trading in its shares and closure of its register until the resolution of its future is determined.”
Market regulator Capital Markets Authority has approved the suspension which bars the public, shareholders, and investors from buying and selling shares of the airline at the bourse.
“The suspension was approved and issued by the Capital Markets Authority pursuant to section 11(3)(w) of the Capital Markets Act and regulation 22 of the Capital Markets)Securities)(public offers, Listings, and Disclosures) Regulations, 2002,” NSE said in a statement.
Last year July, MPs unanimously adopted a report of the Transport Committee that resolved to nationalize the airline.
Under the approved model, Kenya Airways will be one of the four subsidiaries in an Aviation Holding Company which will also be composed of Jomo Kenyatta International Airport, Aviation college, and Kenya Airport Authority.
Kenya Airways is majorly owned by the government at 8.9 percent, 38.1 percent by local banks, 7.8 percent by Air France-KLM, and the rest by individual shareholders including KQ employees.