The Nairobi Securities Exchange has extended the suspension from trading Kenya Airways shares for another six months. The airline is preparing for a government buyout. A statement from the bourse attributes the extension to Kenya Airways’ corporate restructuring, which is still ongoing.
“Notice is hereby given on the extension of suspension from trading of Kenya Airways PLC shares. The company is yet to finalize on its operational and corporate restructure for the eventual Government buyout, following the publication of the National Management Aviation Bill, 2020 on the June 18th 2020,” reads a Thursday statement from the NSE.
The extension will take effect on October 4th 2020, and will remain in force for an additional six months.
In July, the NSE suspended the trading of Kenya Airways shares for three months. The draft law seeks to establish the Kenya Aviation Corporation, a holding company which will house Kenya Airways, National Aviation Council, and the Kenya Airports Authority.
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. Kenya Airways, the state-owned enterprise will replace Kenya Airways PLC at the NSE.
The law proposes that Kenya Airways shares worth an initial share capital of Ksh 7.5 billion, divided into ordinary shares worth Ksh 10.
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