The Nairobi Securities Exchange (NSE) has given a notice of suspension of trading Kenya Airways shares, following the looming government buy-out. The suspension will remain in place until the deal is closed.
“The company’s operational and corporate restructure and Government buy-out is now imminent following the publication of the National Management Aviation Bill, 2020, on June 18, 2020. Consequently, the company has applied for suspension of trading in its shares and closure of its resolution until the resolution of its future is determined” reads the notice issued by NSE.
Kenya Airways shares will stop trading from July 3, 2020, for the next three months.
Kenya Airways, the state-owned enterprise, will replace Kenya Airways Plc at the NSE. The state-owned enterprise will have initial share capital worth KSh 7,482,345,174 divided into ordinary shares worth KSh 10.
SEE ALSO: COVID-19 Delays the Nationalization of Kenya Airways
Under the National Management Aviation Bill of 2020, the National Government shall acquire 100% of Kenya Airways, including its assets, liabilities, workers, licenses, and rights. The bill will establish the Kenya Aviation Corporation, which will spearhead Kenya’s aviation sector development. The corporation will house the Aviation Investment Corporation, an Aviation Corporation Fund, the National Aviation council, Kenya Airports Authority, and Kenya Airways.
