in ,

KQ’s Suspension At The Bourse Extended For Six Months

KQ Flight taking off | Courtesy

Kenya Airways’ (KQ) suspension at the Nairobi Securities Exchange (NSE) has been extended for further six months.

The extension becomes effective from October 4, and has been approved by the Capital Markets Authority (CMA) to allow KQ adequate time to prepare for its planned nationalisation.

Currently, National Management Aviation Bill, 2020 which will legalise nationalisation of the airline, is under the second phase of public participation.

In the nationalisation plan, KQ will merge with  Kenya Airports Authority (KAA) under a new company, the Kenya Aviation Corporation Board.

If enacted, the bill will pave way for buyout of minority shareholders at a premium and converting shares held by banks into Treasury bonds.

Currently, the government holds a 48.9 per cent stake while 7.8 per cent is held by Air France-KLM. Minority shareholders hold 2.8 per cent of the shares currently valued at Ksh397 million. Local lenders own a stake of 38.1 per cent which they acquired in 2017 after the carrier was unable to service its loans of Ksh16.9 billion.

Read: KQ Posts Ksh12.9 Billion Loss For The Year Ending December 2019

KQ was privatised in 1996 but sank into losses in 2014.

It was suspended from the bourse on July 3, 2020.

KQ posted a Ksh12.9 billion loss in the year ended December 2019, a 71 per cent increase in loss as compared to Ksh7.6 billion loss posted in the year ended December 2018.

Email your news TIPS to news@kahawatungu.com or WhatsApp +254708677607. You can also find us on Telegram through www.t.me/kahawatungu

Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. Believes in unearthing societal rots that have been hidden from the public eye.
Follow me on Twitter @FmuliKE. Email francis@kahawatungu.com

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

NCBA Bank Customers Express Frustrations On Social Media Over Intermittent Services

dp ruto

Itumbi Denies Call From Uhuru Scuttled DP Ruto’s Plan To Field Candidate In Msambweni