Kenya Airways’ (KQ) suspension from trading shares at the Nairobi Stock Exchange (NSE) has been extended for an additional 12 months.
In a statement dated January 4, 2023, NSE management said that the suspension would enable the national carrier to complete its operational and corporate restructuring process.
“Notice is hereby given on the extension of suspension from trading of Kenya Airways Plc shares. The extension of suspension seeks to enable the company complete its operational and corporate restructure process. 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 statement read in part.
“The extension of suspension from trading the company’s shares will remain in force for an additional 12 months, with effect from January 5, 2023. All shareholders, investors and the general public are asked to take note of the suspension.”
KQ, which has been surviving on State bailouts since the Covid-19 pandemic, reported a Ksh9.8 billion for the half year ended June 2022.
It booked a further Ksh5.3 billion loss on hedged foreign exchange differences, driving its total comprehensive loss to Ks14.9 billion, a worse showing than the Ksh9.8 billion reported in a similar period in 2021.
KQ hired the US-based consultancy firm Seabury Consulting earlier this year to advise it on a financial restructuring and revitalization strategy. This comes after the government gave up on its aspirations to nationalize it. Of KQ’s shares, the government holds 48.9% of the stock.
New Transport Cabinet Secretary Kipchumba Murkomen disclosed intentions to restructure KQ by dividing it into subsidiaries for freight, passengers, charter services, and drones while testifying before the National Assembly’s Committee on Appointments for vetting.
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