Trade in KQ shares Suspended for further 12 months
Nairobi Securities Exchange has suspended trading in Kenya Airways Shares for a further 12 months citing uncertainties in the operational and corporate restructure process.
The National Carrier shares had been suspended from trading on the Nairobi Securities Exchange (NSE) in July 2020 after legislators kick-started reforms that were meant to swing Kenya Airways back to profitability.
According to NSE, the extension of suspension from trading the company’s shares will remain in force for an additional twelve (12) months, with effect from January 5.
“Notice is hereby given on the extension of suspension from trading of Kenya Airways shares. The extension of suspension seeks to enable the company co1nplete its operational and corporate restructure process,” NSE said in a statement to Newsrooms.
The suspension was approved and issued by the Capital Markets Authority (CMA) pursuant to section 11(3)(w) of the Capital Markets Act and regulation 22 of the Capital Markets (Securities) Regulations, 2002.
This is the third time in a row KQ shares have been suspended.
In the proposed plan, the government is expected to take over Sh93.5 billion of KQ’s debt and inject Sh53.4 billion in direct budgetary support across the 2021/2022 and 2022/2023 budget cycles.
This amount will clear overdue payment obligations and cover the upfront costs of restructuring.
With the proposal, the Kenyan government has dropped plans to nationalise KQ. This was to be realised through the National Aviation Management Bill 2020
KQ’s proposed corporate restructuring, including the nationalisation, could hurt the value of current and prospective investors’ holdings.
“All shareholders, investors and the general public are asked to take note of the suspension” NSE said in the communication