[Photo/kachwanya.com]Kenya Airways has announced plans to dilute shares in a capital raising plan that will see investors pump billions of shillings to the cash strapped carrier.
Kenya Airways in its regulatory fillings says it has secured the approval of two major shareholders to go on with the balance sheet optimization plan.
The carrier is warning the public to exercise caution when buying or selling its shares.
A statement to the Nairobi Securities Exchange confirms that Kenya Airways is in the processing of reorganizing its shareholding structure which will see the government increase its stake in the carrier following a debt to share swap deal.
Dutch based carrier KLM which is the second largest investor in the national carier has also agreed to inject fresh capital into the cash strapped Kenya Airways, though details of the amount remain scanty.
Kenya Airways retail investors who numbers close to 78 thousand will also see their shares diluted further in the balance sheet optimization plan approved by the board and now awaiting regulatory nod.
KQ shares closed for the trading yesterday at six shillings and 85 cents which is a 3 percent improvement from Wednesday’s close of six shillings and 65 cents share.
Kenya Airways says it expects to embark on the fund raising plans immediately the Capital Markets Authority approves the funds drive.
The airline has further cautioned the public to exercise care while dealing with the shares of the company until the process is completed.
According to a dispatch from the Genghis Capital, under the debt to share swap deal, the government will increase her shareholding from the current 29.8 percent to 41 percent while KLM will reduce its stake from 26 percent to 18 percent.