#KENYAAIRWAYS CAN NOW LOOK TO THE FUTURE AS NEW SHAREHOLDING STRUCTURE TAKES ROOTS
(Posted 14th November 2017)
Under the recently approved new shareholding structure – a handful of banks had to be subjected to court processes to finally come on board – is Kenya Airways now very firmly in local hands again. The Kenyan government now holds – when regulatory approvals by the financial regulators have been formalised – 48.9 percent of the company’s shares while the banks, through a special purpose legal platform known as the Kenya Airways Lenders Company, will then own a combined 38.1 percent.
Together this makes for a majority of 87 percent with the balance being held by individual and corporate shareholders and notably the Kenya Airways’ staff.
Both parties will have standing representation on the company’s Board of Directors, paving the way for the company’s management to now move into the next phase of recovery, which should be marked by accelerating growth again.
It is understood that both parties have also applied to the financial regulators to be exempted from having to make a full takeover bid which under the law – given the level of shareholding – is required but can be waived and is expected to be waived, clearing the very last hurdle to put the transaction into legal effect.
