The suspension from trading of Kenya Airways (KQ) shares at the Nairobi Stock Exchange (NSE) has been extended for 12 more months.
In a statement on Tuesday, NSE said that the company’s operational and corporate restructure is still ongoing and the government is expected to give a clear direction on its buy-out or bail-out.
“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) (Public Offers, Listings and Disclosures) Regulations, 2002. The extension of suspension from trading the company’s shares will remain in force for an additional twelve months, with effect from January 5th, 2022,” said NSE.
“All shareholders, investors and the general public are asked to take note of the suspension.”
KQ shares were initially suspended from trading on NSE in July 2020 year after MPs began to review the law that will pave the way for the government to take back full control of the airline.
The suspension was extended for nine more months in April 2021. Currently, the government owns a 48.9 percent stake in KQ, while Air France-KLM owns 7.8 percent.
Before being suspended from the bourse, KQ’s shares were trading at Ksh3.83. Shareholders will now be waiting to know the government’s offer on share price, as it seeks to buy out minority shareholders in buyout plan.
Under the nationalisation plan, the government plans to create an aviation holding company that will run four subsidiaries including KQ, Jomo Kenyatta International Airport, an aviation college and the Kenya Airports Authority, which will operate all other airports.