File image of a Kenya Airways plane. PHOTO/ COURTESY The suspension of Kenya Airways (KQ) shares from trading on the Nairobi Securities Exchange (NSE) has been extended for a further six months effective from October 4, 2020.
The extension approved by the Capital Markets Authority (CMA) comes as the management of KQ finalizes on its operational and corporate restructure for an eventual government buyout.
KQ’s renationalization currently awaits the adoption of the National Management Aviation Bill, 2020 which is currently under a second wave of public participation.
The shares of Kenya Airways were first suspended from trading on July 3 following the publishing of the aviation management bill.
The suspension of the shares from trading is standard capital market procedure which kicks in to safeguard investors from material changes in companies.
The announcement on KQ’s renationalization for instance triggered new interest in the company shares as investors bet on a premium buyout price from government.
Once renationalized, Kenya Airways is set to merge its operations with those of the Kenya Airports Authority (KAA) under the wings of a new Kenya Aviation Corporation board.
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