KQ suspended from trading at NSE Ahead of Buyout by Government - Capital Business
Connect with us

Hi, what are you looking for?

KQ

Kenya

KQ suspended from trading at NSE Ahead of Buyout by Government

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.

Advertisement. Scroll to continue reading.

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.

Advertisement

More on Capital Business

Kenya

NAIROBI, Kenya, Jun 24 – The Media Council of  Kenya (MCK) is set to establish a network of legal experts in media law to...

Agriculture

NEW DELHI, June 24 (Xinhua) — Indian government Monday imposed stock limits on the quantity of wheat that retailers and processors can hold. The...

Kenya

NAIROBI, Kenya, June 24 – Experts are calling for responsible artificial intelligence (AI) adoption, coming at a time when the adoption of AI is...

Health

JUNE 24 – Africa’s booming youth population presents a tremendous opportunity. But job creation hasn’t kept pace. The continent also faces a significant burden...

World

LONDON, June 23 (Xinhua) — The Conservative Party of the United Kingdom (UK) has been hit by several allegations that top members placed bets...

Energy

NAIROBI, Kenya, June 23 –  The United States Department of Energy has revealed investment plans for Kenya’s green energy transition, focusing on e-mobility and...

World

NEW DELHI, June 23 (Xinhua) — The Indian Space Research Organization (ISRO) on Sunday completed its Reusable Launch Vehicle (RLV) technology demonstration by carrying...

Health

NAIROBI, Kenya, June 23 – The Association of Registered Nurse Anaesthetists-Kenya (ARNA-Kenya) has urged the government to sponsor specialist training for nurses working with...