The Nairobi Securities Exchange (NSE) has announced an extension of suspension from trading of Kenya Airways Plc for another year beginning January 5, 2023.
Suspension on trading KQ shares extended for another 12 months - NSE
Extension period begins on January 5, 2023
In a statement dated January 4, 2023, NSE noted that the extension of suspension seeks to enable the company to complete its operational and corporate structures process.
“Notice is hereby given on the extension of suspension from trading of Kenya Airways Plc shares. “The extension of suspension from trading the company’s shares will remain in force for an additional twelve (12) months, with effect from January 5, 2023,” NSE announced.
According to NSE, the move was approved 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.
This is the third time the NSE is suspending the trading of the ailing company shares.
The first extension was done in July 2020, when MPs began a review of the law to create space for the state to control the airline.
This bid was however, dropped in December 2021. An extra suspension, was later enforced in June 2021 for nine months.
The notice was given through a public notice.
"Notice is hereby given on the extension of suspension from trading of Kenya Airways Plc shares. The company is yet to finalize it's operational and corporate restructure for the eventual Government buy-out, following the publication of the National Management Aviation Bill, 2020, on 18th June 2020.
“The extension of suspension from trading the company’s shares will remain in force for an additional nine (9) months, with effect from April 5th, 2021," said NSE in 2021.
The company which has been receiving billions of shillings over the years has sunk into debt and continue making huge losses since 2014.
As of January 3, 2023, KQ share index and volume stood at 127.34 and 1.7 million respectively. Meanwhile, the Equities' turnover and Bonds value records as of the same date are Sh33 million and Sh223 million respectively.
In the first half of 2022, the firm recorded a Sh9.9 billion loss, which was attributed to the high cost of fuel.
The continuous losses witnessed in the company pushed President William Ruto to seek an alternative. In December 2022, the president met with Delta Air officials to discuss a deal that would see them acquire KQs majority stakes.
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