Nairobi — The Capital Markets Authority (CMA) has extended suspension of the Kenya Airways’ (KQ’s) shares for additional 12-months to enable the firm complete operational and restructure process.
The suspension was approved by 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.
The suspension means the National Carrier’s shares will not be traded at the NSE until 2024, when the extension deadline lapses.
“Notice is hereby given on the extension of suspension from trading of Kenya Airways Plc shares,” NSE said in a statement.
“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 added.
This is the third time KQ’s shares are being suspended.
The first suspension was done in July 2020, when MPs started a review of the law to allow the state to take control of the airline.
Lawmakers in 2019, approved Treasury’s plan to nationalize KQ.
Extra suspension was enforced in April 2021, for an additional nine-months.
“Notice is hereby given on the extension of suspension from trading of Kenya Airways Plc shares. The company is yet to finalise on its operational and corporate restructure for the eventual Government buy-out, following the publication of the National Management Aviation Bill, 2020, on 18th June 2020,” NSE said in 2021.
“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.”
KQ is owned by the National Government and Air France-KLM with 48,9 percent, 7.8 percent respectively.
As at July 2020, before its suspension, its shares were trading at Sh3.83.