Kenyan Airways
Kenyan – The Treasury and 10 local banks will control 87 percent of Kenya Airways (KQ) under the national carrier’s debt restructuring plan which will see them convert loans of Sh44.2 billion to equity. The government’s stake in the plan will rise to 48.9 percent from 29.8 percent, while the banks’ stake will stand at 38.1 percent, acquired under a special purpose vehicle known as KQ Lenders Co.
Both say in notices posted Monday that they have also applied to the Capital markets Authority (CMA) for exemption from a requirement to make a takeover offer for the airline, on the grounds that the restructuring is on the basis of rescuing a firm in financial distress in the interest of the public.
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“KQ Lenders Co will be issued with new shares in KQ equivalent to 38.1 percent of the ordinary voting shares in the capital of KQ in consideration for conversion of a portion of the debt being equivalent to $167.24 million (Sh17.2 billion),” reads the notices in part.
“The effect of the debt conversion (by the government of Kenya) is the acquisition of an additional 19.1 percent of the ordinary voting shares of KQ resulting in the increase of the government’s shareholding from 29.8 percent to 48.9 percent.”
The Treasury and 10 local banks will control 87 percent of Kenya Airways (KQ) under the national carrier’s debt restructuring plan which will see them convert loans of Sh44.2 billion to equity. The government’s stake in the plan will rise to 48.9 percent from 29.8 percent, while the banks’ stake will stand at 38.1 percent, acquired under a special purpose vehicle known as KQ Lenders Co.
Both say in notices posted Monday that they have also applied to the Capital markets Authority (CMA) for exemption from a requirement to make a takeover offer for the airline, on the grounds that the restructuring is on the basis of rescuing a firm in financial distress in the interest of the public.
“KQ Lenders Co will be issued with new shares in KQ equivalent to 38.1 percent of the ordinary voting shares in the capital of KQ in consideration for conversion of a portion of the debt being equivalent to $167.24 million (Sh17.2 billion),” reads the notices in part.
“The effect of the debt conversion (by the government of Kenya) is the acquisition of an additional 19.1 percent of the ordinary voting shares of KQ resulting in the increase of the government’s shareholding from 29.8 percent to 48.9 percent.”
