NSE suspends KQ trading to allow share split, consolidation

Kenya Airways CEO Sebastian Mikosz.  [File photo]

NAIROBI, KENYA: Nairobi Securities Exchange (NSE) has temporarily suspended trading of Kenya Airways stock.

This is to enable a share split and simultaneous consolidation of the company’ stock which forms part of the Kenya Airways PLC capital transaction.

“Notice is hereby given on the suspension in trading of Kenya Airways PLC effective November 15, 2017 up to and including November 28, 2017. The suspension is to facilitate the share split and simultaneous consolidation of the company’s shares which forms part of the Kenya Airways PLC capital transaction,’ reads statement.

The government this week agreed to convert Kenya Airways debt into equity giving it a controlling stake in the airline.

The government currently owns ordinary shares in Kenya Airways to the tune of 29.8 percent of the issued share capital.

The effect of the debt conversion and subscription agreement is the acquisition by government of an additional 19.1 percent of the ordinary voting shares in the capital of KQ resulting in the increase of shareholding from 29.8 percent to 48.9 percent of the ordinary voting shares.

Under the new arrangement, a consortium of local banks through a special purpose vehicle – KQ Lenders Company 2017 Ltd - will also own 38.1 per cent shares of the airline after having the debt owed to them by KQ converted to equity.