Kenya Airways’ (KQ) shares have been suspended from buying and selling on the Nairobi bourse for 3 months as the method of State takeover enters an important stage.
Nairobi Securities Change mentioned in a Friday morning assertion that KQ had utilized for the suspension.
This can even see the airline’s share register closed till the decision of its future is set.
“The corporate’s operational and company restructure and Authorities buy-out is now imminent following the publication of the Nationwide Administration Aviation Invoice, 2020, on 18th June 2020,” mentioned NSE.
“Consequently, the corporate has utilized for suspension of buying and selling in its shares and closure of its register till the decision of its future is set.”
The Capital Markets Authority (CMA) has accepted the suspension, which is able to see KQ shareholders unable to purchase or promote their shares through the interval.
The suspension units in instantly and can stay in drive as much as October three and comes at a time KQ share has been witnessing a rally, defying the widely bearish bourse since Covid-19 struck in mid-March.
KQ share has gained by 173.57 % within the final three months – the very best on the bourse – to shut Thursday buying and selling at Sh3.83.
The return of KQ to the NSE now lies within the fingers of Parliament provided that the passage of the Nationwide Aviation Administration Invoice 2020 will see authorities take again full management of the nationwide provider by October and delist it.
The loss-making airline, which is 48.9 % government-owned and seven.eight % held by Air France-KLM, was privatised 24 years in the past however sank into debt and losses in 2014.
Air-France KLM, which had the choice of promoting its stake to the federal government and staying on as a technical associate for the airline, has opted to exit.
The nationwide provider has been working solely cargo flights for necessities similar to drugs since Covid-19 however is now hoping for gradual resumption of passenger flights.