KENYA AIRWAYS GETS SHAREHOLDER APPROVAL FOR NEW SHARE ISSUE
The Annual General Meeting of The Pride of Africa at the Bomas of Kenya in Nairobi yesterday produced the anticipated result, when the shareholders overwhelmingly voted YES when the proposal by the Board of Directors for a new share issue was tabled. A meeting of the board on 13th September had passed the relevant resolution although the fact itself was known for some time already, only awaiting pen being put to paper ahead of the airlines AGM.
Kenya Airways intends to raise much needed funding from the new share issue to finance the ongoing expansion drive, and key shareholders like the Kenyan government and KLM / Air France have already indicated that they will take up their entire allotment, which in the case of government alone will cost them an approximate 60 million US Dollars.
With the shareholder approval now in the bag the final stage will be with the financial regulators which have to sanction and approve the planned transaction before shareholders will receive formal notification of their entitlements to new shares and the final price tag. The required Cautionary Statement as prescribed under the Capital Markets Regulations of 2002 for Public Offers, Listings and Disclosures, has been issued following the board meeting in September. News that the financial authorities have approved the application will appear here in due course.