Trading in Kenya Airways shares halted for 3 months on Nairobi bourse

FILE PHOTO: Kenyan Airways planes are parked at the Jomo Kenyatta International Airport in Nairobi, Kenya, March 24, 2020. Picture taken March 24, 2020. REUTERS/Baz Ratner/File Photo

The Nairobi Securities Exchange (NSE) on Friday suspended the trading of Kenya Airways shares due to an impending government buyout.

The NSE said in a statement that the national carrier’s operational and corporate restructuring is now imminent following the publication of the National Management Aviation Bill, 2020, in June.

“Consequently, the company has applied for suspension of trading in its shares and closure of its register until the resolution of its future is determined,” the bourse said.

Kenya Airways, which was privatized in 1996, is 48.9 percent owned by the government, 38.1 percent by local banks while KLM Royal Dutch airline holds 7.8 percent and other shareholders hold the rest of the stakes.

The suspension of trading in the company’s shares takes effect on July 3 and will remain in force for a period of three calendar months.

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