In Summary:
- KLM as result of its in-kind contribution will have a shareholding of 7.8% and the balance, of 5.2%, between other shareholders and a new employee share ownership Plan (ESOP)
- Government increased its shareholding to 48.9% of the ordinary voting shares with the consortium of local banks through a special purpose vehicle – KQ Lenders Company 2017 Ltd – owning 38.1 per cent shares of the airline after having the debt owed to them by KQ converted to equity.
- The restructuring makes KQ competitive and sets the company on a path of profitability with a healthy liquidity
- KQ Cabin Factor grew by 5.4 per cent with Passenger numbers going up by 3.3 per cent to 2.31 million. Loss after tax reduced by 20.5 per cent to KShs 3.8 billion from KShs 4.78 billion.
By Irene Atieno
Kenya Airways PLC has listed additional shares at the Nairobi Securities Exchange (NSE) after two weeks temporary suspension to enable a share split and simultaneous consolidation of the company’ stock as part of the airlines successful financial and capital restructuring plan.
The airline closed the intricate financial and capital restructuring process, the first of its kind in this market, on 15 November bringing to the table key stakeholders including shareholders, financiers and lessors to agree to secure the airline’s future.
The restructuring saw the Government increase its shareholding to 48.9% of the ordinary voting shares with the consortium of local banks through a special purpose vehicle – KQ Lenders Company 2017 Ltd – owning 38.1 per cent shares of the airline after having the debt owed to them by KQ converted to equity.
KLM as result of its in-kind contribution will have a shareholding of 7.8% and the balance, of 5.2%, between other shareholders and a new employee share ownership Plan (ESOP).
To facilitate the share capital reorganisation, the register was closed from close of business on 14 November 2017 and trading was suspended from 15 November 2017 up to today.
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: “This occasion, the relisting of Kenya Airways 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 turnaround this airline and secure its future.”
Mikosz reassured stakeholders, and more shareholders, that the airline is on a growth path having reported a 52.1 per cent increase in Operating Profit to Kshs1.443 billion for the period ending 30 September 2017, compared to KShs 0.9 billion in the prior period.
Its Cabin Factor grew by 5.4 per cent with Passenger numbers going up by 3.3 per cent to 2.31 million. Loss after tax reduced by 20.5 per cent to KShs 3.8 billion from KShs 4.78 billion.
Reiterating his remarks NSE Chief Executive Mr. Geoffrey Odundo said “We applaud Kenya Airways for boldly using this process of a 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.
Kenya Airways PLC will continue to be listed in the Ugandan and Tanzanian stock exchanges as well.
