Eleven banks to own 38.1pc stake in Kenya Airways

[mwathadan]

Eleven local banks are set to be the second largest shareholders of national carrier Kenya Airways after forming a special purpose vehicle to acquire shares in the airline.

As part of a bold restructuring plan, the banks will convert part of loans issued to Kenya Airways to acquire a 38.1 percent stake.

This follows a deal proposed by the airline that will see the banks convert $167.24 million (Sh17.3 billion) of the $217.2 million (Sh22.5 billion) in loans issued to the airline.

The shares will be owned by a new special purpose vehicle called KQ Lenders Company managed by Minerva Fiduciary Services from Mauritius.

The local banks in the debt conversion deal include KCB Group, Commercial Bank of Africa, Co-operative Bank and Equity.

Other banks include I&M Bank, Jamii Bora, NIC Bank, Ecobank, National Bank, Diamond Trust Bank and Chase Bank.

As part of the deal the banks will sign a new loan agreement for the outstanding loan amount of $50 million to acquire more shares in future.

“The effect of the mandatorily convertible loan agreement is the issuance of ordinary shares to the KQ Lenders Co at a future date in accordance with terms of the agreement,” Kenya Airways said in notice in the dailies.

Kenya Airways has been under huge financial strain over the years, reporting losses for five consecutive years.

The airline shrunk is full year to March loss by 60 percent to Sh10.2 billion with the debt restructuring plan expected to give it financial headroom to bounce back.

The government will also acquire an additional 19.1 percent shareholding in Kenya Airways, pushing its total shareholding to 48.9 percent as part of restructuring of government loans advanced to the airline

The treasury had issued two loans to Kenya Airways worth Sh4.2 billion and $197.2 million (Sh20.4 billion) respectively.

Both the lenders and the government have applied for an exemption from a Capital Markets Authority (CMA) requirement to make a takeover offer.

Transport Cabinet Secretary James Macharia is set to issue further details of the deal.

 

[eliakeem]

duuu pole sana KQ. that action of chopping stakes to lenders in other words is known as receivership. calling it in other name makes it to look beautiful outside although it's rotten inside.

 

[Geza Ulole]

duuu pole sana KQ. that action of chopping stakes to lenders in other words is known as receivership. calling it in other name makes it to look beautiful outside although it's rotten inside.

Halafu hayo mabenki yamekataa

 

[mwaswast]

Usual haters pounced on the thread like hungry mongrels.

 

[Geza Ulole]

Usual haters pounced on the thread like hungry mongrels.

Equity bank wameenda mpaka mahakamani! Hawataki kuuziwa mzoga kwa kulazimishwa na GoK!

 

[BIGstallion]

Vibombadier vyetu japo wanaviwinda lakin bado tunamiliki big cake, poleni sana KQ, poleni wakenya

 

[mwaswast]

Equity bank wameenda mpaka mahakamani! Hawataki kuuziwa mzoga kwa kulazimishwa na GoK!

Kumbe you are among the mongrels am talking about.

 

[Geza Ulole]

Kumbe you are among the mongrels am talking about.

Prove me wrong if Equity r not in courts!

 

[mwathadan]

Geza over 80% of KQ will be owned by Kenyan government and Kenyan banks...isn't it a good thing? Si you always claim KLM calls the shots at KQ

 

[Geza Ulole]

Geza over 80% of KQ will be owned by Kenyan government and Kenyan banks...isn't it a good thing? Si you always claim KLM calls the shots at KQ

The thing is it won't save the airline from making loss especially if u look at travelling industry developments in the region!

KIA is over 90% ready with her expansion a reason Magufuli doesn’t give a damn about tour vans ban reciprocation at JKIA on his confiscation of livestock from Kenya.

Meanwhile, after seeing Barrick gold's Acacia headquarters r moving to Mwanza, Qatari n Emirates governments are to invest in Mwanza airport PAX terminal that is to take over 2 mln PAX per year ready to serve great lakes countries closely n easily having been frustrated with frequency allocations at JKIA!

FYI, I don't see JKIA remaining a hub to support KQ that will be parting ways with KLM+Air France alliance while JNIA alone will be the biggest in the region by September 2018 likewise Abeid Aman Karume (ZIA) Terminal II expansio (another 2 mln +) will be ready by 2nd half 2018 !

And aside all that our tourism is leading n booming, n even growing faster regardless of negative coverage on Kenyan media! I don't even wanna mention even Air Tanzania! I see the airline having 12-15 aircraft to cause mayhem on KQ operations.

Mind u commander in chief (CiC) Magufuli will demand equal number of frequencies in Kenya just like KQ has in Tanzania. The path ahead is pretty rough a reason ur banks r refusing forced marriage in ownership of defunct airline in ICU's deathbed!

 

[Cicero]

I wish to see the revival of East African Airways.
KQ igawe hizo hisa kwa serikali za Tanzania, Uganda, Rwanda, Burundi na South Sudan. Kila nchi iwe ina umiliki wa kiasi flani.
KQ iwe rebranded to East African.
East African iwe na exclusive rights to all domestic (East African) routes.
Na iwe na vituo vyake within every East African intenational airport.
I propose pia an East African Civil Aviation Authority to oversee a single East African airspace.
I propose an East African Ports Authority to be based in Dar es Salaam (kama ile ya kwanza).
I propose an East African Posts and Telecommunications Authority.
I propose..........................................the list is endless.
If only our leaders and people would think long term.

 

[Geza Ulole]

I wish to see the revival of East African Airways.
KQ igawe hizo hisa kwa serikali za Tanzania, Uganda, Rwanda, Burundi na South Sudan. Kila nchi iwe ina umiliki wa kiasi flani.
KQ iwe rebranded to East African.
East African iwe na exclusive rights to all domestic (East African) routes.
Na iwe na vituo vyake within every East African intenational airport.
I propose pia an East African Civil Aviation Authority to oversee a single East African airspace.
I propose an East African Ports Authority to be based in Dar es Salaam (kama ile ya kwanza).
I propose an East African Posts and Telecommunications Authority.
I propose..........................................the list is endless.
If only our leaders and people would think long term.

Aa wapii wacha ife kwanza jinsi Wakikuyu walivyopangana kwenye nafasi hata iwe African airline itakufa! Kila mtu na chake vi-compete atakayeshinda abaki tusiuziwe mbuzi kwenye gunia!

 

[dickchiller]

I wish to see the revival of East African Airways.
KQ igawe hizo hisa kwa serikali za Tanzania, Uganda, Rwanda, Burundi na South Sudan. Kila nchi iwe ina umiliki wa kiasi flani.
KQ iwe rebranded to East African.
East African iwe na exclusive rights to all domestic (East African) routes.
Na iwe na vituo vyake within every East African intenational airport.
I propose pia an East African Civil Aviation Authority to oversee a single East African airspace.
I propose an East African Ports Authority to be based in Dar es Salaam (kama ile ya kwanza).
I propose an East African Posts and Telecommunications Authority.
I propose..........................................the list is endless.
If only our leaders and people would think long term.

Kwa wanasiasa wa kanda ya nashariki ni ngumu kutekelezeka hili jambo. Sababu kubwa ni ngumu sana hiyo east africa airways kuwa huru kidemokrasia na kutoingiliwa kisiasa

 

[ndughuri msuya]

Vibombadier vyetu japo wanaviwinda lakin bado tunamiliki big cake, poleni sana KQ, poleni wakenya

Fahari ya Africa inageukaje kuwa fukara ya Africa,aliye juu mngoje chini wahenga walisema.poleni wajameni

 

[eliakeem]

Kumbe you are among the mongrels am talking about.

zile hoja ambazo your intelligence quotient can not decipher just pita by.
siyo kila kitu lazima ujibu.